Natural Gas Price Forecast – Natural Gas Markets Continue to Crumble

Natural Gas Price Forecast Video for 27.01.23

Natural Gas Technical Analysis

Natural gas markets have gotten hammered yet again during the trading session on Thursday, as warm weather continues to work against the idea of natural gas strength, which does not seem to be coming anytime soon. Even if we did get a rally at this point, it would only end up being a nice selling opportunity given enough time. The $3.00 level should now have a certain amount of psychology attached to it, but sooner or later we may get a bear market rally. If we do, it could be quite brutal.

To the downside, the $2.50 level is your next major target, and of course we need to pay close attention to what happens there. Quite frankly, we have completely blown this market apart, as it had been overdone for so long. Market participants had been banking on a really cold winter in Europe with Russian gas being nonexistent, but instead got warmer than expected temperatures, and the Freeport facility opening much quicker than anticipated. In other words, the demand is less than expected, with the supply being very much intact.

At this point, I’m just looking to fade rallies that show signs of exhaustion, but we are nowhere near that. I suppose you could try to short here, but a bear market rally could be devastating to your account if and when we finally get it. Quite frankly, chasing the trade is not the way to go in general, and unfortunately if you are not involved now, that’s about the only way you can be until we get that bear market bounce.

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