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

Christopher Lewis
Updated: Mar 23, 2023, 14:07 GMT+00:00

Natural gas markets have drifted a little bit lower during the trading session on Thursday, as we continue to see lackluster and negative performance.

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Natural Gas Price Forecast Video for 24.03.23

Natural Gas Technical Analysis

Natural gas markets have fallen a bit during the trading session on Thursday as we continue to see a lot of negativity in the market. After all, the natural gas markets are suffering under the threat of a major recession, as demand will almost certainly fall from not only heating concerns due to the time of year, but the fact that global economy slowing down will drive demand for natural gas from an industrial factor as well.

The $2.00 level continues to be a major support level underneath, and therefore it’s worth paying close attention to that level as it is a large, round, psychologically significant figure, and of course would attract a lot of headlines. On the other hand, the resistance above is near the $3.00 level, which also has the 50-Day EMA approaching it. In other words, I think we continue to see a lot of back and forth, perhaps trying to build up some type of basing pattern, or if nothing else, just to kill time through spring and summer, when demand traditionally drops anyway.

If we were to break above the $3.00 level, then it could open up a move all the way to the $4.00 level, but even in that environment, I’d be looking for signs of exhaustion to start shorting. I have no interest in buying natural gas, and I look at any rally at this point in time as an opportunity to start shorting yet again. I do believe that eventually we will see this market bounce a bit, just simply because it is so oversold. However, it could be a very quiet couple of weeks.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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