Natural Gas Price Forecast – Natural Gas Markets Continue to Hover at Same Region

Natural Gas Price Forecast Video for 26-01-2024

Natural Gas Technical Analysis

The natural gas markets initially rallied just a bit during the trading session on Thursday, but they gave back a bit of the gains. Now at this point, we have filled the gap from the open on Monday and it looks like we are going to slow down to the $2.50 level, which I think is an area where we could be attracted to it because it is more or less fair value. When I look at the totality of the market, the $2 level underneath is significant support, while the $3 level above is significant resistance. That being said, I do think that the resistance also extends to the $3.33 level, so that is possible as well.

Keep in mind that we are getting close to the end of winter. Remember, futures markets are actually starting to price in March now, and therefore it is going to put some type of downward pressure on natural gas due to the fact that heating demand will drop. This winter has pretty much been a bust as there have been one or two weeks here and there that have been extraordinarily strong, but beyond that, we really haven’t taken off. And that’s mainly because the weather itself has been somewhat mild. So, with that, I think we are getting ready to head into a range for probably most of the year.

The $2 level underneath would be support and again, the $3.33 level above is the ceiling. I’m going to trade this pair like that, or this market like that, for the rest of the year. Now, having said that, we are essentially in the middle, and that means to me that it’s a very neutral market, but based on the exhaustion in the very short term I would not be surprised at all to see this market pull back. If we do rally, the 50 day EMA sits right around the $2.75 level and that could cause a little bit of resistance as well.

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