Natural Gas Price Forecast – Natural Gas Markets Continue Consolidation

Natural Gas Price Forecast Video for 22.03.23

Natural Gas Technical Analysis

Natural gas markets have fallen a bit during the trading session on Tuesday as we continue to see a lot of consolidation in general. The $2.00 level underneath should offer a significant amount of psychological support, and it’s also worth noting that we bounced from there previously. On the upside, the $3.00 level is at the top of the range, with the 50-Day EMA sitting just above there. It is worth paying attention to the 50-Day EMA, because it is a widely followed technical indicator, and this is a very technically driven market.

Looking at this chart, we are obviously in a downtrend, and now it might possibly be a situation where we are trying to consolidate to either build a large base for a bounce, or just simply lose a lot of interest as market participants start to focus more on the fact that temperatures will be warmer in the northern hemisphere soon, and of course the fact that there are concerns about whether or not we are going to be struggling economically, which should bring down the demand for natural gas from industrial usage, or perhaps better put, a lack of.

Either way, we are probably due for some type of bear market bounce, but that bear market bounce will more likely than not offer more opportunities to the downside, so I’m looking to fade rallies. I’m not necessarily looking to chase the market all the way down here, so I don’t necessarily like the idea of shorting after we have rolled over yet again. Regardless, we will eventually get a major shot higher, and at that point I will simply let the market run out of momentum before selling.

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