Advertisement
Advertisement

Natural Gas Price Forecast – Natural Gas Markets Attempt To Stabilize From Oversold Condition

By:
Christopher Lewis
Published: Dec 14, 2023, 15:10 UTC

Natural gas markets have attempted to rally early during the trading session on Thursday as we are most certainly an oversold condition based on multiple indicators.

Natural gas tanks, FX Empire

In this article:

Natural Gas Price Forecast Video for 15.12.23

Natural Gas Technical Analysis

Natural gas remains a miserable place to hold onto, as although we are trying to form some type of base and are underneath the oversold condition on the Relative Strength Index, the reality is that the market still believes that natural gas will never be used again. It has been so overdone that it’s unreal, but you could’ve said that 2 weeks ago. With that being the case, if you are small enough you could be cautiously optimistic, but I think this would be a short-term bounce.

The $2.50 level above almost certainly will offer a lot of headaches for buyers, so keep that in mind. If we can break above there, then the market truly could start to take off, but at this point I don’t think that happens very easily. Ultimately, this is a market that I think is probably still in the midst of trying to find its base and therefore its bottom. The $2.00 level underneath should end up being somewhat important as well, so keep that in mind.

With all of that being said, it is probably only a matter of time before buyers would come in and try to pick that level up if it did in fact get challenged. At this point, I can say that it is likely that short-sellers are going to step in and take profit, especially as we head into the holiday season. If that is going to be the case, then you have to be short-term bullish, but only if you can sit and babysit the trade.

For a look at all of today’s economic events, check out our economic calendar.

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.

Did you find this article useful?

Advertisement