Natural Gas Price Forecast – Natural Gas Continues to Look Threatened at Lows

Natural Gas Price Forecast Video for 08-02-2024

Natural Gas Technical Analysis

The natural gas market has rallied slightly during the early hours on Wednesday as the $2 level continues to be an area of importance. If we can break higher, then the $2.15 level could be the next target. Anything above there opens up a deeper recovery. And let’s face it, the $2 level is an area on longer term charts that certainly has shown a lot of promise. With that being the case, I think you have to look at it through a prism of a potential consolidation region that we are building right now, between the $2 level on the bottom and the $3 level on the top. In general, this is a market that will continue to be noisy and therefore you need to be cautious with your position sizing.

Furthermore, you have to keep in mind that you are definitely swimming up river if you are trying to buy this pair, but at the same time, it’s at an extreme historical low. From what I have found, the best way to trade a market like this is to simply trade small, hang on for the bigger swings, and then collect your profit. The winter has been a complete bust for the natural gas markets and as a result, I don’t think we go massively higher, but we definitely could see some type of recovery towards the 50-day EMA, maybe even the 200-day EMA, which could have this market going all the way to the $2.80 level.

If we break down below the $2 level, that would be very bad, perhaps opening up a move down to $1.80. However, one would assume that sooner or later profit taking from short selling will begin in earnest and that in and of itself could cause a significant bounce. However, I would be somewhat quick to take any profits that I had – unless of course you are able to hang onto a smaller position. Either way, this is a market that will be very noisy no matter what, but that’s typical for natural gas overall.

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