Natural Gas Price Forecast – Natural Gas Markets Continue to Look Anemic

Natural Gas Price Forecast Video for 02.02.23

Natural Gas Technical Analysis

Natural gas markets have gone back and forth during the trading session on Wednesday again but continue to show plenty of negativity. At this point, the $2.50 level offers a bit of a large, round, psychologically significant figure that people will be paying close attention to. If we break down below there, then it’s likely that the natural gas market goes much lower, perhaps reaching to the $2.00 level. That of course would be a major coup for the short-sellers, so obviously would catch a lot of attention.

Rallies at this point in time have to be looked at through the prism of being suspicious, so therefore every time this market does rally, I’m looking for a long way to the upside that I can start shorting against. Whether or not that actually plays out will wait to be seen, but I think at this point in time we have to assume that there will be a bear market rally sooner or later. After all, it is rather cold in the United States, so sooner or later somebody will get the idea of trying to run this back up.

Nonetheless, we have seen just how negative the situation has been for this market, and of course we are getting rather close to warmer temperatures in the northern hemisphere. It is worth noting that we are trading the March contract in the futures market. In other words, this is a situation where we could see a little bit of a rally that will only invite more downward pressure. I would love to see this market reach toward the $4.00 level, but right now it just won’t do it.

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