Natural Gas Price Forecast – Natural Gas Continues to Look Anemic

Natural Gas Price Forecast Video for 23.02.23

Natural Gas Technical Analysis

The natural gas markets have fallen slightly during the trading session on Wednesday, as we have seen further weakness. That being said, the $2.20 level seems to be a very important level to pay close attention to, so I do think that it is yet another speed bump on the way to oblivion the way things are going. However, we have seen a little bit of a push back in the middle of the day, so it might be worth paying close attention to see whether or not we can get some type of rally.

If we do get that short-term rally, it is going to be a nice selling opportunity as far as I can see, as the market is so significantly negative, and I do think that at this point you have to look at it through the prism of a continuing downtrend as we are starting to head into warmer temperatures in the northern hemisphere. Ultimately, the natural gas markets will continue to reflect the fact that demand that never really took off like people thought it would in the European Union, as the temperatures were much warmer than anticipated. Remember, there was quite a bit of concern that we were going to see major disruptions during cold waves as Russia invaded Ukraine. That being said, the market continues to look extraordinarily negative, so I’m looking to short the market every time it has a little bit of a rally and shows signs of exhaustion.

The 50-Day EMA is near the $3.50 level and is dropping, and therefore I think it’s a situation where we would need to see that broken to even have a serious attempt at a real rally. Ultimately, this is a market that I think continues to see the fact that Freeport is open, allowing liquefied natural gas to be sent around the world from one of the major hubs in Texas. This has flooded the market with natural gas that has also been exacerbated by those warmer than anticipated temperatures in the EU. With this, I remain very bearish, but I also recognize that we could see a bear market rally, but that should be an opportunity for those who are patient enough to wait for the exhaustion.

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