Forecast of Natural Gas Prices – Natural Gas Markets Continue Meandering

The natural gas market has fluctuated throughout the day on Thursday, as prices continue to hover around $9.

As we continue to ascend in a rising wedge, Thursday’s natural gas markets experienced a rather quiet trading session. We are also hovering around $9, and it appears that we are attempting to consolidate into the weekend. Natural gas markets remain choppy and turbulent, and I am monitoring this rising wedge for indications of a move. On the other hand, we will continue to advance from here, with the $10.00 level representing a significant resistance barrier that people will be monitoring closely.

Clearly, this market will continue to be volatile and impacted by external forces, particularly the European crisis and the arbitrary shutdown of Russian pipelines. Ultimately, I believe that this market will continue to be extremely volatile and difficult to trade, so you should maintain sensible position sizes. Consequently, it is difficult to short this market, but if we were to break through the wedge, the market could certainly drop to $8.00. If the market were to break above the $10.00 level, the situation may become explosively volatile.

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Since there is so much noise and a geopolitical crisis could enter the scene at any moment, the retail trader should not participate in this market. Ultimately, if you decide to trade on this market, you may be better suited trading options, as you can mitigate a significant portion of your risks. Short-term, it appears that we will continue to squish this wedge.

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