Natural Gas Price Forecast – Natural Gas Markets Continue Recovery

Natural Gas Price Forecast Video for 12.04.23

Natural Gas Technical Analysis

Natural gas markets have rallied during the Tuesday session as the $2.00 level underneath continues to offer support. Whether or not it holds over the longer term is a completely different question, but it is a large, round, psychologically significant figure, so it does attract a lot of attention. Furthermore, it is historically the bottom of the summer range, so therefore I think we are trying to settle into that area. That being said, if we were to break down below the $2.00 level, it’s very likely that we could drop down to the $1.80 level, which is also an area where we have seen a lot of noise in the past.

On the upside, we have to look at the $3.00 level as the top of the overall range that we tend to have during warm months, so it does make a certain amount of sense that we would see that area offer a bit of a lid for the market. Between here and there, we have the 50-Day EMA hanging around the $2.66 level, and dropping, so that could cause a little bit of resistance. Ultimately, this is a market that I think is trying to figure out its range for the next couple of months, and therefore a bit of a rally makes sense, but I would be very surprised if we can keep any significant momentum to the upside.

Ultimately, this is a market that I think if you do see a bit of a bounce from here, you will be offered a selling opportunity sooner or later. Signs of exhaustion would be jumped upon, as it follows the longer-term trend overall. The market has been in a downtrend for quite some time, and therefore you have to think of it as a market that you should be a seller of, not trying to pick the bottom anytime soon. That being said, the market is likely to continue to see a lot of choppy behavior, but I still look for signs of exhaustion that I can start selling, as it more likely than not will be only a matter time before the downward pressure increases again.

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