Natural Gas Price Forecast – Natural Gas Markets Continue to Fall

Natural Gas Price Forecast Video for 18-01-2024

Natural Gas Technical Analysis

Taking a look at the natural gas markets, you can see that they fell yet again during the trading session on Wednesday. This is a sign that the natural gas markets will continue to sell off after that massive spike as the weather in the United States will more likely than not turn around rather quickly. This is something that we see every winter from time to time, fluctuating with the latest temperatures.

After all, the market is highly sensitive to the latest weather report, and that typically means that you have to keep an eye on what’s going on in the northeastern part of the United States. As we approach the 50-day EMA, it does make a certain amount of sense that traders will come in and take a serious look at this as potential technical support, as it quite often ends up being. However, it isn’t guaranteed.

But if we break down below there, then it’s possible that we see this market go looking towards the $2.50 level. Natural gas, of course, continues to be in heavy abundance, and I just don’t see that changing anytime soon. Futures traders are already starting to price in the idea of trading at the end of February, soon to be early March contract, and by the time we get into March, you start to see demand dissipate.

So, ultimately, I do think this is a situation where you are looking at this through the prism of a potential continuation of the downside. Now, I don’t think that we have fallen apart. I just think that we’ve got a situation where, you know, we got a little ahead of ourselves. Natural gas does tend to do that. And we will come back to reality here in a minute reaching that equilibrium right around $2.50. Underneath there, we have massive support at the $2 level, which I think is the floor in the market. Anything below that lever would be surprising and even disastrous for the markets.

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