Natural Gas Price Forecast – Natural Gas Markets Continue to Cling Onto $2

Natural Gas Price Forecast Video for 10.04.23

Natural Gas Technical Analysis

Natural gas markets fell during the Thursday session, and of course, were closed on Friday. What I find interesting is that we close at the very bottom of the range for Thursday, closing at $2.011, and at the very lows of the day. This tells me that people were not interested in holding any risk whatsoever heading into the weekend, and suggest that natural gas markets are ready to go even lower. That being said, I don’t necessarily think that this is a huge selling opportunity, just that we still have not found the bottom. Quite frankly, if you are trying to short something that is already down almost 80%, you probably shouldn’t be trading.

Any balance at this point in time does offer an opportunity though, so it takes a significant amount of patience to wait for that setup. However, some type of bounce with an exhaustion candle above would be a great way to short the market again. Unless you are a short-term trader or a scalper, you will probably struggle to place a lot of trades. Nonetheless, we will eventually get a “bear market bounce”, and when we do it should be a selling opportunity. Keep in mind that the 50-Day EMA sits near the $2.70 level, which of course is a major indicator that a lot of people pay close attention to. Just above there, we have the $3.00 level, a large, round, psychologically significant figure that a lot of people will pay attention to as well. In fact, the last swing high we had ended up testing that area.

When you look back at historical charts, you can see that the area between $2.00 and $3.00 has historically been the basic warm months range, and it looks like we are setting up something similar this year. However, one thing that you need to keep in mind is that eventually, this will be a great trade to the upside, as European countries have not filled their stockpile sufficiently to avert some type of buying frenzy later this year. In the short term though, remains a fade the rally market.

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