Natural Gas Price Forecast – Natural Gas Continues to See Noise

Christopher Lewis
Published: May 24, 2024, 15:33 GMT+00:00

The natural gas market continues to be very noisy on Friday, as we are trying to hang onto the gains. The $2.50 level underneath is crucial, so pay special attention to it.

In this article:

Natural Gas Technical Analysis

The natural gas markets have fallen initially during trading session on Friday, but it does look like we are trying to defend the $2.50 region. This is an area that, of course, is interesting and it is a large round number. So I think at this point you’ve got a situation where market participants will continue to look at this as a buy on the dip market. If we break down below the $2.50 level, then it’s possible we could drop down to $2.25, and then even as low as $2. The market remains one that is very volatile, that is the nature of natural gas.

You can see clearly there is a lot of action around $2.50. So, we’ll see if that holds. As long as that holds, the buyers have an opportunity to take advantage of the momentum. As things stand right now, a lot of what we are looking at is, a hotter than usual temperatures in the United States. And once that drops, this price will drop.

So, I have already made a certain amount of profit in my ETF position. As you know, I will look to add once we drop again. Historically speaking, this is not a very strong time of year. So, I think this is short lived. But we could get a bounce. $2.50 will determine almost everything in this market for the time being. I wouldn’t be interested in getting “too big” in this market, mainly because it is a dangerous one that can wreck a retail account.

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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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