Natural Gas Price Forecast – Natural Gas Continues to Struggle

Natural Gas Price Forecast Video for 01.05.23

Natural Gas Technical Analysis

The natural gas market has experienced a slight downturn in Friday’s trading session as prices approach the $2.00 level. The market faces challenges with demand, particularly with the onset of warmer weather in the northern hemisphere, which is the biggest area of demand. If the market experiences a lack of cold weather, prices are likely to drop. Typically, this time of year sees a range between the $2.00 level on the bottom and the $3.00 level on the top.

Technical indicators suggest that there may be resistance at the $2.55 area, with the 50-Day EMA situated just above it and dropping. Even if the market breaks above that level, the $3.00 level is likely to offer significant psychological resistance, as it has in the past. The market will continue to experience back-and-forth movement, making it difficult to be overly bullish on natural gas at this time. While a heat wave may cause a spike in prices, the market remains in a “fade the rally” type of situation.

One of the main problems facing natural gas currently is the global drop in demand due to the onset of a global recession and dollar pressure. There is no interest in buying natural gas at this time, although prices may rise later in the year if Europeans need to refill their tanks. However, this is likely to be a couple of months away, so there is no urgency, and rallies are expected to be short-lived.

The natural gas market is influenced by several factors, including supply and demand, weather patterns, geopolitical tensions, and global economic conditions. As a result, it is important to keep an eye on these factors to avoid being caught off guard.

At the end of the day, the natural gas market experienced a slight downturn in Friday’s trading session, reaching towards the $2.00 level. The market continues to struggle with demand, particularly with the onset of warmer weather in the northern hemisphere. Technical indicators suggest that there may be resistance at the $2.55 level, and the $3.00 level is expected to offer significant psychological resistance. Ultimately, position sizing is the best defense for anyone willing to try to take a “flyer” on a move higher.

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