Natural Gas Price Forecast – Natural Gas Markets Continue to Drift Lower Despite Massive Selloff

Christopher Lewis
Updated: Mar 30, 2023, 14:39 GMT+00:00

Natural gas markets have drifted a little bit lower during the trading session on Thursday as we continue to see a lot of negativity out there. All things being equal, this is a situation that looks like it is a bit precarious at best.

Natural Gas, FX Empire

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Natural Gas Price Forecast Video for 31.03.23

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 noisy behavior in general. Ultimately, this is a situation where the $2.00 level underneath should continue to offer a bit of a support level against selling pressure. However, if we were to break down below there, it could very well be a situation where the market finds itself in a bit of a black hole, as FOMO shorting would almost certainly come into the picture.

Looking at this chart, it looks as if the $2.00 level underneath will cause a certain amount of psychology to come into the picture, and this of course is something that you need to keep in mind. That being said, I don’t necessarily see any other reason than that psychology to think that this market could bounce. Quite frankly, there’s no real reason for natural gas to be strong, due to the fact that the temperatures are going to start rising in the United States and Europe, and of course will drive down demand. Furthermore, you have to worry about whether or not the industrial demand will crater, due to the fact that we have seen so much in the way of negative economic activity, and therefore you have to be very cautious with the idea of whether or not the demand will actually be there in the future.

From a technical analysis standpoint, the 50-Day EMA sits near the $2.84 level, and is dropping. Just above there, we have the $3.00 level, which obviously has a lot of psychology attached to it as well. Breaking above that level then opens up the possibility of moving to the $4.00 level, but at this point in time it looks as if any signs of exhaustion after a short term rally would be a nice selling opportunity. Ultimately, this is a situation where you see a lot of noise more than anything else, so there should be plenty of selling opportunities if we get some type of bear market rally.

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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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