Natural Gas Price Forecast – Natural Gas Markets Continue to Look for a Bottom

Christopher Lewis
Published: Jan 27, 2023, 16:56 UTC

Natural gas markets have drifted a little bit lower during the trading session initially on Friday, but then turned around to show signs of life again. Ultimately, this is a market that is completely oversold.

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Natural Gas Price Forecast Video for 30.01.23

Natural Gas Technical Analysis

Natural gas markets have fallen a bit during the trading session on Friday, but then turned around to show signs of life again. Ultimately, this is a market that I think needs some type of situation where we have the oversold condition getting ridiculous, so I do think there is a bounce coming.

Whether or not I would be a buyer of natural gas is a completely different question obviously, because the demand is going to be a major issue. When I look at the overall attitude of markets, I recognize that a significant bear market rally could be coming, but the problem that we have is that winter has been much warmer than anticipated in places like the European Union in the United States.

Granted, we will almost certainly get some type of cold snap sooner or later, and that will be what causes a major bear market rally. I’m looking at that as a potential selling opportunity, at the first signs of major exhaustion. That being said, it’s probably worth noting that the market could go rather far in a short amount of time considering how many shorts are out there.

I would anticipate massive swing sooner or later, but I would like to see the market rally towards the $4.00 level to look for shorting opportunities. Granted, you could be a seller here, but you need to be aware of the fact that you are very late in the trade, and therefore taking undue risk. If you are ready short, then you need to look at this through the prism of moving your stops closer.

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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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