Natural Gas Price Forecast – Natural Gas Continues to See Negative Pressure

Natural Gas Technical Analysis

Natural gas markets have gapped lower to kick off the Monday session, but then turned around to show signs of bullish pressure. That being said though, this is a market that is so negative at this point, that it’s very difficult to imagine getting long of this market. This market is one that will be a major problem for those trying to play the longer-term game – mainly because there will more likely than not be a long wait as we are heading into the spring season in the United States and Europe. Because of this, demand could be an issue.

The $1.50 level underneath is a cyclonically important support level that I think comes into the picture. So do pay attention to it. That being said, there is very little on this chart to suggest that the market is one that you can trust. You know, when you look at the weekly chart, you can just see how dire this situation is. We’re all the way down to almost the lows of 2020.

That being said, if you’re more of a longer term investor, maybe you could get involved, but I’d be very cautious with your position sizing. You can’t sell the market. I mean, at this point in time, you’ve completely missed the move. So with that being said, it’s more likely a scenario where you’re going to have to wait until a weekly signal to get involved. And even then, you have to be very cautious. This looks like a great way to lose money if you time everything wrong and the timing, I think, is going to be the most difficult part as we start to head into the spring. Keep in mind that winter was a complete bust, so now we’re stuck with trying to carve out some type of range for the year and it seems as if the supply is only getting more and more abundant, at least until drillers stop producing because they will eventually at this type of pricing.

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