Natural Gas Price Forecast – Natural Gas Continues to Languish

Natural Gas Price Forecast Video for 09-02-2024

Natural Gas Technical Analysis

The Natural gas market initially tried to rally on Thursday, but gave up strength again, as we are now poking below the $2 level. This is a pretty negative turn of events for the natural gas market and now it looks like we are in serious trouble, perhaps heading down to the $1.80 level.

The winter has been a complete bust as the temperatures just haven’t got that cold. And now that futures traders are starting to focus on spring, it really puts the nail in the coffin for natural gas. That being said, I still believe that there is a range coming for the year, but perhaps it’s down to the $1.80 level before we find real support based on previous technical analysis, there is precedence for support to be there.

At this point in time, I just can’t sell the market either because we are so extended to the downside that sooner or later we will get a ripping rally to the upside, but right now there’s just no signs of it. I would be far away from this market if at all possible because, quite frankly, the risk to reward ratio is not going to be in your favor to start shorting here. This is a market that has been overdone for a long time and eventually will turn around.

Perhaps we are trying to find that yearly range that we tend to get to the upside. The $2.50 level would be a target for those of you who are willing to buy on a swing trade as it is an area of somewhat equilibrium. And a lot of people will, of course, like the idea of that mid century mark, attracting a lot of options traders. That being said, this is a pretty ugly chart.

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