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Natural Gas Price Forecast – Natural Gas Continues to Languish

By:
Christopher Lewis
Published: Feb 13, 2024, 14:32 UTC

The natural gas markets continues to see a lot of selling pressure, as there is seemingly no bottom in this market at the moment.

Natural gas plant, FX Empire

In this article:

Natural Gas Price Forecast Video for 14-02-2024

Natural Gas Technical Analysis

The natural gas market has initially tried to rally during the trading session on Tuesday but gave back gains as we continue to see a lot of noisy behavior. Ultimately, I think this is a situation where traders will continue to look at this through the prism of whether or not they can find value down here or if natural gas is someday going to be free. Quite frankly, $1.50 could be calling at this point, even though $1.80 should be somewhat supportive as well. Sooner or later, drillers step away from the fields. And I think we’re at that point, so the market will get a nasty surprise someday when they realize that people stop drilling.

In the short term though, it looks like there’s just no hope for this market. That being said, it’s almost impossible to short it from all the way down here. I mean, you’re trying to pick up pennies in front of a steamroller at this point. What I’m waiting for is some type of basing pattern on a weekly chart, then I would get long. Otherwise, this is just dead money. At this point, $1.50 is very possible, which is ridiculous, but it is what it is.

We do have a situation where the winter has been a complete bust and has not helped the situation at all. And because of this, I think you have to look at any rally with a little bit of suspicion, but you short-term traders will probably like the idea of playing some type of hard bounce if and when it shows up. I mean, obviously, it has to be sooner or later. Natural gas can’t go to zero, so sooner or later, those value hunters come in and pick things up.

For a look at all of today’s economic events, check out our economic calendar.

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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