Natural Gas Price Forecast – Natural Gas Markets Continue to Look for Buyers
Natural Gas Price Forecast Video for 07.02.23
Natural Gas Technical Analysis
Natural gas markets have been very choppy during the trading session on Monday, as we continue to see the market hang around the $2.50 level. That being said, there just doesn’t seem to be any real interest in trying to buy natural gas, despite the fact that temperatures have occasionally plummeted. That being said, it’s been a very mild winter, and of course the Freeport terminal in Texas is open to export liquefied natural gas. In other words, the supply of natural gas is hardly something that people are worried about.
That being said, we may get that sudden snap higher that we tend to get towards the end of the winter trading season, for the last major winter storm of the year. After that, we will fall right back down. In other words, I am more than willing to short this market on short-term rallies to show signs of exhaustion, which I do expect to see given enough time.
Although natural gas is “cheap”, there is no real reason to be buying at this ultra-low level, despite the fact that it’s very tempting. While this will turn around eventually and go much higher, we are light years from that happening, and therefore it’s probably best to stay away from the long side and simply wait for an opportunity to short. While we have seen several moves to sell this market recently, the reality is that we are stretched to the downside, so unless you are trading a very short-term chart, it’s difficult to press the sell button in this market. Regardless, buying is going to be even more difficult at this point in time.
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