Natural Gas Price Forecast – Natural Gas Markets Continue to Drift Lower

Natural Gas Price Forecast Video for 16.03.23

Natural Gas Technical Analysis

Natural gas markets have drifted a bit lower during trading on Wednesday as we continue the overall downtrend. The latest news of course is going to be the fact that there is plenty of supply coming from Freeport terminal in Texas to make up for other losses. Because of this, the market is likely to have trouble taking off to the upside. In fact, I suspect that this is a situation where market participants will continue to look at it through the prism of a lack of demand.

One of the biggest lack of demand scenarios is the fact that we are entering a warmer time of year, despite the fact that temperatures are a little cooler at the moment in the northern hemisphere than usual. This will drive down demand as the cyclical nature of this market historically will tell you. Furthermore, there is also concern now that the global economy may slow down, and that will take a lot of demand out of the market from an industrial standpoint.

Because of this, you will have to be very cautious and understand that any rally at this point in time is probably going to be thought of as a shorting opportunity. In fact, the 50-Day EMA sits at the $3.10 level, and more likely than not will continue to offer a bit of psychological and technical resistance. If we somehow get above there, I would be surprised but then the next major barrier shows up at the $4.00 level.

Underneath, the $2.00 level more likely than not will end up being a significant support level for any move lower, but that does not necessarily mean that it has to hold. After all, there is a lot of fear out there, setting up a potential meltdown in many assets, not just this one. That being said, if you have the ability to buy natural gas via ETF or something that’s not levered, sooner or later this might be a nice bottoming pattern for a swing trade.

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