Natural gas price forecast – Natural gas markets give up early gains

Natural gas price forecast – Natural gas markets give up early gains

Natural gas technical analysis

Natural gas markets initially rose during Friday’s trading session, but the 50-day EMA has resisted a little too much. By doing this, the market is likely to continue to see a lot of selling pressure, and we may even collapse from here. On the other hand, if we were to move above the 50-day EMA, it is possible that we could recover and try to reach the $9.00 level. That said, we have recently formed a rising wedge and have not yet hit the target.

The market dropping below the $7.69 level could create significant selling pressure as it would blow through much support and move beyond the measured move. If that were to happen, it’s likely we’ll end up testing the 200-day EMA. Ultimately, this is a market that is still tossed around by a lot of different problems, not the least of which, of course, will be whether the Americans can supply liquefied natural gas to the Europeans, which at the moment is not likely they will be able to.

The market is likely to continue to see a lot of volatility, so the best thing you can do right now is to keep your position small. In general, you should view the market as a very dangerous market, so you have to be very careful about positioning and of course the aggressiveness of your trading. I suspect we’ve seen the highs, but some sort of geopolitical issue could change things quickly.
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