Natural Gas Price Forecast – Natural Gas Continues to See Downward Pressure

Christopher Lewis
Updated: Feb 12, 2024, 15:01 GMT+00:00

The natural gas markets will continue to see a lot of skepticism going forward as the markets have been so negative. However, we are closer to the bottom than the top.

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Natural Gas Price Forecast Video for 13-02-2024

Natural Gas Technical Analysis

The natural gas markets initially gapped lower during the open on Monday but has turned back around to try to show signs of life. Quite frankly, we have completely fallen apart over the last two or three weeks and we are currently in the process of trying to find the bottom. After forming the hammer on Friday, it looked like we were at least going to try, but now, we may have to dig towards the 1.80 level to show signs of life. That’s an area that has been important previously. If we can turn around and take off to the upside and take out the $2 level, it’s possible that we could go looking to the $2.25 level.

Breaking above there then opens up the possibility of a move to the $2.50 level. In general, this is a market that I think continues to pay close attention to weather, as per usual, and quite frankly, winter is just about over. I live in the northeastern part of the United States and its been t-shirt weather all last week. And of course, even if we do get the occasional winter storm and we probably will between now and the end of March, it’s only going to be a short-term rally. Longer term, we’re going to try to carve out a range for the year. We will have to see this being fulfilled sooner or later, as the market continues to get so cheap that sooner or later drillers may not be interested in adding more supply in this environment.

We are close to the bottom. I mean, we have plunged so much, how could we not be? But that doesn’t necessarily mean it’s going to be an easy asset to hold. A rally from here is going to take a significant amount of momentum and some type of catalyst, but if you are more of a longer term swing trader, buying is possible. You just have to do so at a very limited amount.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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