Natural Gas Price Forecast – Natural Gas Continues to Drift Lower

Natural Gas Price Forecast Video for 19-01-2024

Natural Gas Technical Analysis

Natural gas rallied initially during the trading session on Thursday, but it looks like the $3 level is now going to continue to be a major resistance barrier. We are testing the 50-day EMA, and it’s probably worth noting that the candlestick from the previous session had been important, but also had been very neutral. In fact, you could make an argument that perhaps the candlestick could be trying to set up some type of short-term range.

So, the question now is whether or not we are going to break down below the 50 day EMA or if we’re just going to bounce around in this area. As things stand at the time of recording, I’d say consolidation is likely, but it is probably only a matter of time before we break down below the 50 day EMA, opening up the possibility of a move down to the $2.50 level. Keep in mind that futures traders are starting to price in the idea of spring.

After all, we’re not too far from trading the March contract in the futures market. Recently, the natural gas markets have shot higher due to cold weather in the northeastern part of the United States, but sooner or later that stops and price drops. The winter has been a huge bust for natural gas. And this latest time of bullish pressure, we have tested the highs and found them to hold yet again.

I think that’s probably the story here, that now you’re starting to look to the downside. Maybe not aggressively, but it certainly looks like we could continue to drop from here. Natural gas is abundant, as American producers are producing natural gas hand over fist at this point. That is a very similar dynamic to what we see in the crude oil markets, where the supply just outweighs the demand, and that’s probably the main factor to pay attention to in this market.

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