Natural Gas Price Forecast – Natural Gas Markets Continue to Consolidate at a Big Figure

Natural Gas Price Forecast Video for 16.02.23

Natural Gas Technical Analysis

Natural gas markets have fallen just a bit during the trading session on Wednesday, as we continue to hang around the $2.50 level. That being the case, it looks like we are going to continue to see a lot of noisy behavior, and I do think eventually we get some type of bear market rally. After all, this can’t go on forever, and I do think that it is probably a little overdone. We are heading towards spring, and that will mean less demand for natural gas, but it also means that people will probably be willing to take their profit center later.

With Freeport reopening its LNG exports, I think that also comes into play, flooding the market with more supply. There was once a lot of concern that perhaps the Russian invasion of eastern Ukraine was going to disrupt supply, but quite frankly it looks like the global market doesn’t need anywhere near as much natural gas as had been feared. The winter in Europe had been rather mild, so that of course comes into play as well.

But all of that being said, I think rallies at this point should be nice selling opportunities given enough time. I don’t know if we will continue to see this market simply sit still. A short covering rally, or for that matter a bear market rally, should offer a nice selling opportunity from higher levels. In that scenario, I’m looking for the 50-Day EMA to offer a bit of a barrier. After that, I would expect the $4.00 level to be difficult to break above.

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