Natural Gas Price Forecast – Natural Gas Gaps Higher to Start the Week

Natural Gas Price Forecast Video for 10.01.23

Natural Gas Technical Analysis

Natural gas markets have gapped higher to kick off the trading week, reaching the $3.90 level rather quickly, but have been somewhat lackluster since then. At this point, the market looks as if it is going to be very noisy and it may try to recover for a while, but I suspect somewhere near the $5.00 level you have a significant amount of resistance. Furthermore, you have to keep in mind that although temperatures have been warm as of late in the northern hemisphere, the reality is that we will get a cold snap sooner or later that will make the market go higher.

In that scenario, I would be looking for a place to start selling at the first signs of exhaustion. After all, we have seen a collapse in natural gas pricing for multiple reasons, not just the short term weather situation. The futures market is currently trading the February month, meaning that we are just a couple of weeks away from trading March. March of course is the beginning of warmer temperatures, so we have most certainly seen the highs for the winter.

Yes, I recognize that there’s a lot of concerns about Russian supply, but it’s possible that we may get through this winter without a complete financial bomb going off in the natural gas region. At this point, I hope we can do short-term spike that I can be a seller of, especially near the $5 level, maybe even the $5.25 level. I have no interest in buying this market, although short-term traders may take a flyer on this one.

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