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

Natural Gas Price Forecast Video for 24-01-2024

Natural Gas Technical Analysis

Natural gas, as you can see, has kind of just hung out here during the trading session on Tuesday, as we don’t have any real drive to go higher, but at this point we have dropped enough to suggest that perhaps we are getting closer to the bottom. Now, that being said, the $2 level underneath is a major support level that I think we need to pay close attention to. If we break down below the $2 level, it would obviously be an extraordinarily negative turn of events, but I don’t think that will happen anytime soon.

The $2.50 level is an area that I think a lot of people will be paying attention to as it is essentially the middle of the overall consolidation range. If we turn around and rally, I think we could go looking to the $3 level, which obviously is a resistance barrier, extending to the $3.33 level. All things being equal, we have to pay close attention to the fact that natural gas is going to face a serious demand problems coming soon due to the fact that we are heading into spring.

After all, futures traders are getting ready to start trading the March contract. So, I think you’ve got a situation where we just don’t have enough time for winter out there to really push the market higher. I think we are trying to carve out some type of consolidation range between $2 and $3 and we’ll just have to see how that plays out. But right now, I just don’t see a whole lot of upward momentum. You know, you may be able to play the bounce, but it’s going to be more short-term range bound trading this year, I believe.

With all of this being said, you have to be very cautious with your position sizing, but I do think that you have an opportunity to use some type of range bound trading strategy in this market over the next several months, as we don’t really have any desire to go drastically higher, but sooner or later we are going to find a floor.

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