Natural Gas Price Forecast – Natural Gas Markets Continue To Drop

Natural Gas Price Forecast Video for 27.11.23

Natural Gas Technical Analysis

Natural gas markets have fallen a bit during the course of the trading session on Friday, as we continue to ignore winter. That being said, it’s probably only a matter of time before we get a cold snap and things turn back around. We also need to focus on the lack of supply in Europe this winter, which quite frankly the Europeans got lucky last winter. There is a rising trend line and of course the 50% Fibonacci level just below that could come into the picture to offer support, so I think that is something worth paying attention to.

On the other hand, if we turn around and break above the highs of the Friday session, we could see natural gas rally toward the $3.50 level, maybe even higher than that. I do think that we will eventually get a spike in price, but right now it seems like people are willing to overlook what’s coming. The market did rise 40% from the lows, so this pullback does make a certain amount of sense as well. Simply put, we had gotten a little overbought.

I’m looking for some type of bounce to add to an already existing ETF position, which I would anticipate happening sometime soon. The next couple of days could be crucial, because if we break that trendline, then you have to ask questions about whether or not the market is trying to price in some type of massive depression. After all, a lack of demand for natural gas in the winter would be extraordinarily odd, and it would suggest that perhaps industry collapsed.

Gas numbers economically are bad, but when asked to think that sooner or later the markets have to price in the overall heating demand. This is why you cannot put huge positions on in the natural gas markets, weather reports in Massachusetts, Maine, New York, and the overall general area can move the market quite drastically as well. Unless you are meteorologist, you don’t really have a shot in the market with a huge position. With that, be cautious, but I do think that value hunting is about to come back.

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