Natural Gas Price Forecast – Natural Gas Markets Continue to Plunge

Natural Gas Technical Analysis

Natural gas markets fell again hard during the day on Friday as we continue to see a lot of negative pressure. At this point, we are falling below the $5.50 level and we seem very likely to turn towards the $5.00 level. That being said we are oversold so I think it’s probably only a matter of time before we get some sort of short term rally but this rally could be a selling opportunity if we get any signs of exhaustion after this rebound.

Looking at this chart, you can see that the 200-day EMA has come back into the picture, and it looks to me like it will continue to offer significant resistance. This assumes we can get close to it anywhere, which obviously isn’t necessarily a given due to the fact that we’ve seen so much demand destruction as the global economy slows. I believe it is only a matter of time before the rallies are hit in the face, with the caveat that volatility will continue to be a major issue.

The size of the candlestick shows a lot of negativity and a lot of momentum. If we end up closing below the $5.50 level, I expect we will continue to see lots of selling. Again, rallies should be sold at the first sign of exhaustion as traders begin to focus on the global slowdown more than anything else.

Natural Gas Price Prediction Video for 10.24.22

For an overview of all of today’s economic events, check out our economic calendar.