Natural Gas Price Forecast – Natural Gas Markets Continue to Bounce

Natural Gas Price Forecast Video for 13.01.23

Natural Gas Technical Analysis

Natural gas markets have rallied a bit during the trading session on Thursday as we continue to recover from an oversold condition. At this point, it looks as if the natural gas markets are trying to recover somewhat significantly, and we could get a wicked bounce at this point. That being said, I also recognize that the highest for the year are most certainly in already, especially as we are looking to get into spring weather. Remember, the futures market is currently trading the February contract, which is the last winter contract. By the time we get to the end of March, you start to see warmer temperatures in the United States and the European Union.

On the upside, the $5.00 level seems to be an area where we could see a lot of resistance. The $5.00 level is an area that I think is worth paying close attention to, because it has a lot of psychology attached to it, as it is a large, round, psychologically significant figure. Furthermore, I think there is resistance all the way up to the 50-DMA, which is at the $5.50 level. All things being equal, this is a market that has plenty of noise above, so I’m going to let this thing bounce and look for signs of exhaustion that I can start shorting again.

Obviously, we are oversold so I think that a lot of traders will be looking to take profits, and we probably get one more cold snap for the rest of the winter, meaning that we will see the natural gas markets take off to the upside for short-term burst. I will be more than willing to get short of that.

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