Natural Gas Price Forecast – Natural Gas Markets Continue to Look Miserable
Natural Gas Price Forecast Video for 01.02.23
Natural Gas Technical Analysis
Natural gas markets have done very little during the trading session on Tuesday as we continue to hang around the very lows of this massive selloff. At this point, we are trying to find some type of reason for natural gas to go higher, and as I currently look outside, it is 17°F. For those of you not in the United States, that translates to -8.333 Celsius. That being said, even with the cold weather in the US, we just don’t have enough demand to send this higher. This is mainly due to the fact that the Freeport LNG export terminal is up and running.
Beyond that, it’s been a relatively mild winter in both the United States and the European Union, which of course helps natural gas prices drop as well. The market has been very noisy along the way, and I do think that eventually we will get some type of bear market bounce. That being said, I’m not looking to buy this market but rather I’d be looking to short this market after that bear market bounce.
With that in mind, I think we’ve got a situation where you are going to have to be very patient. As you can see, the angle of the trajectory is starting to slow down, so that at least suggests that a lot of the pressure is starting to abate. That being said, if we were to break down below the $2.40 area, then the market could go all the way down to the $2.00 level. Do not get me wrong, someday there is going to be a great trade here, right now unless you are short already, you are just simply fading short-term rallies at best.
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