Natural Gas Price Forecast – Natural Gas Markets Continue to Rally

Natural Gas Price Forecast Video for 15-01-2024

Natural Gas Technical Analysis

Natural gas has rallied on Friday to show signs of strength again as the market participants continue to pay close attention to the weather in the Northeast of the United States. There is a winter storm coming over the weekend and that could have a significant amount of influence but really at the end of the day, you have a situation where natural gas is too far late in the season to really hang on to gains for a longer term move. This of course is unless something actually happens with supply. Right now, supply is plentiful, so this blip will more likely than not end up being a nice selling opportunity, perhaps the next time we get an inventory number, for example.

The $3.33 level has been important multiple times and should continue to be a bit resistive, but even if we break above there, as we are already in February futures and almost ready to flip over to March, I just don’t see how the market has anything sustainable ahead of it. In fact, I’d probably be willing to short this market on some sign of exhaustion, but we just don’t have it yet.

One thing is for sure, though: if the weekend storm ends up not being as bad as they say it’s going to be, natural gas will get slammed when that happens. It’s a very fickle contract, so you have to be conscious of your position sizing. And you have to recognize that the CFD that you are trading in the natural gas market is based on the Henry Hubb contract, which is in the United States. Unless there’s something drastic like the war last year where gas was cut off to Europe really starts to grip the market, then it’s all about US weather. It appears that the lack of energy in Europe has been diverted to other things like coal. So as it stands right now, this is a market that could spike a little bit further from here, but I’d be looking for signs of exhaustion to start selling again.

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