Natural Gas Markets Continue the Explosive Move Higher

Natural Gas Weekly Technical Analysis

Natural gas markets have broken above a major resistance barrier, and the fact that we have gotten above there does suggest that something has just broken. The natural gas situation right now focuses on whether or not the European Union will give in to pressure from Russia and start paying for natural gas in rubles. Looking at this chart, you can see just how parabolic this has been, and right now we are essentially moving on geopolitical games.

If we turn around and break down below the $6.50 level, it could signify a major turnaround. This would almost certainly have something to do with the European Union finally admitting that it needs Russian natural gas. Ultimately, the idea is that the United States will supply the European Union with the LNG, so it will be interesting to see how much further that comes along. After all, the Europeans do not have the capacity to “re-gasify” the LNG that would be necessary.

The next couple of weeks are going to be instrumental in where we go for the longer term because eventually, something has to give. Natural gas cannot break much higher without causing major chaos. When you look at the previous consolidation area, raking above it does suggest that the market could go to the $9.50 level, but that remains to be seen. The biggest problem is that almost all of this is going to come down to whether or not the Russians and the Europeans can finally come to terms. If they do not, then natural gas markets are going to have to start pricing in a complete rework of global systems.

Natural Gas Price Forecast Video 18.04.22

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