Natural Gas Price Forecast – Natural Gas Markets Continue to Search For Bottom

Natural Gas Price Forecast Video for 02-02-2024

Natural Gas Technical Analysis

Natural gas initially tried to rally during the trading session on Thursday but gave back early gains as it looks like we are going to continue to see a lot of noisy behavior. The $2 level underneath should be a significant support level and it could be the bottom of the overall consolidation range that we will almost certainly be in longer term.

After all, natural gas does tend to consolidate through most of the year and quite frankly, we are almost done with winter so even though we might get another spike, it would be short term at best, just like the last one was. The winter has been very disappointing, so the oversupply of natural gas continues to be a major issue. That being said, if you are a short term trader you may be able to buy dips here for short term trades at best.

$2.50 is essentially going to be fair value at this point. Breaking above there opens up a run all the way to roughly $3.33, but I suspect that the $3 level will also have its say. If we were to break down from here and slip below the $2 level, that would be a pretty significant turn of events as well, but that seems less likely at this point in time, as $2 has historically been very well guarded.

Expect choppy volatility and of course, a range-bound setup is what you’re looking for. If you have a good range-bound system that takes advantage of something like a stochastic oscillator or another type of range-bound oscillator, this might be the market for you for the next several months. We are closer to the bottom than the top, so I am looking for buying opportunities. That being said, I will cash in on profits rather quickly as well, as the market is erratic and choppy to say the least.

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