Natural Gas Price Forecast – Natural Gas Markets Continue to Hang Around the 200-Day EMA

a technical analysis of natural gas

During Friday's trading session, natural gas markets first declined a little before turning around and reviving. I believe there will be a decision-maker in this market in the end, and it is important to note that the weekly candlestick is neutral. In this region, I believe that if we can rise above the peak of the shooting star from the previous session, it's possible that the market will turn toward the $7.72 level, which is the location of the 50-Day EMA.

On the other hand, it's conceivable that we may decline to the $6.35 level from where we previously rebounded if we were to break down below the bottom of the candlestick during the trading session on Friday. The market is still quite choppy and loud, but we are a bit overdone at this point, so I believe that what we have is a scenario where we may see a little rebound before having to resume shorting.

The market is currently very likely to remain choppy, but we are getting close to the bottom of the overall channel, so I believe that eventually we will see a "fade the rally" move. However, I wouldn't necessarily want to pursue the trade all the way down here unless, of course, we break down to a fresh, new low. The natural gas markets often see very high levels of volatility, making it difficult to become aggressive in this sort of environment. As a result, it's important to maintain a fair position size.