Natural Gas Price Forecast – Natural Gas Markets Continue to Consolidate

Natural Gas Price Forecast Video for 14.02.23

Natural Gas Technical Analysis

Natural gas markets have fallen just a bit during the trading session on Monday, as we continue to hang around the $2.50 level. Quite frankly, the demand for natural gas is falling through the floor, and now that we are starting to see Freeport supply plenty of gas, it’s difficult to imagine a scenario where it simply takes off to the upside. With this in mind, it’s also worth noting that we are already trading the March contract, meaning that we are looking at warmer temperatures in the future anyway.

I think if we do see a bit of a rally from here, the $3.00 level will be the beginning of resistance, followed by the 50-Day EMA, which is sitting just below the $3.80 level. Finally, we have the $4.00 level which of course has a significant psychological importance to it as well. Rallies at this point that show signs of exhaustion are probably worth paying attention to, because they could end up being the next great shorting opportunity.

While I don’t necessarily advocate the idea of buying this market as we head into the spring, the reality is that those who are more short-term I did make it an opportunity for a bear market rally. Swing traders like myself will prefer to sell this market as soon as is so signs of falling after a nice rally, but at this point it’s all about trading back and forth in a very small range. If we break down from here, then the $2.00 level will be the next major psychological barrier that people will be paying close attention to. Expect to see a lot of volatility.

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