Natural Gas Price Forecast – Natural Gas Markets Gap Lower to Kick Off Monday Session

Natural Gas Technical Analysis

Natural gas markets have gapped lower to kick off the trading session on Monday, reaching down to the $6.14 level right away. At this point, the market looks as if it is going to try to threaten the $6.00 level, but it may have to bounce a bit in order to fill that gap initially. We will need to wait to see whether or not that happens, but it would be a great area to start selling from as well. On the other hand, if we were to break down below the bottom of the candlestick for the trading session on Monday, that opens up the possibility of dropping all the way down to the major support level underneath.

That major support level, near the $5.50 level, is an area where we have seen buyers multiple times. If we break down below that level, and perhaps even the $5.00 level, it’s likely that natural gas will collapse at that point.

On the other hand, if we were to turn around and take out the $7.00 level, then it opens up the possibility of a much bigger move. In that scenario, I suspect that we go look into the $8.00 level, where we had seen a lot of resistance at previously. All things being equal, this is a market that I think will continue to see a lot of volatility, which is nothing new for natural gas, especially at this point in the year. One of the biggest negatives that I have seen as of late has been concerns about a lack of demand.

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