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Natural Gas Price Forecast – Natural Gas Markets Continue to See Negativity

By:
Christopher Lewis
Published: Feb 3, 2023, 17:05 GMT+00:00

Natural gas markets have fallen a bit during the trading session on Friday, as we continue to see a lot of negativity in this market.

Natural Gas, FX Empire

In this article:

Natural Gas Price Forecast Video for 06.02.23

Natural Gas Technical Analysis

Natural gas markets have dropped a bit during the trading session on Friday to break down below the $2.50 level, and now it looks as if we are ready to go much lower. At this point, if we continue to see any negativity, it’s likely that the $2.00 level could be a target. The $2.00 level is a large, round, psychologically significant figure and an area that has been important in the past, and of course will attract a lot of attention. At this point, this is a situation where things have gotten so out of control you cannot chase the market all the way down here.

The only thing I think you can think about doing at this point is waiting for some type of bear market rally that you can start fading at the first signs of exhaustion. If you are short-term day trader, then you can fade short-term rallies, but you need to keep in mind that this is a market that is way oversold at this point, and seemingly is right for some type of bear market rally that could rip the face off of sellers.

The 50-Day EMA is near the $4.14 level and is dropping, so I think it’s likely that we could see that offer a bit of resistance on a rally, and I think at this point it’s very likely that we would see some type of cold snap cause this, but quite frankly the cold snap that is going on right now in the United States has not moved the needle, so we will have to wait and see how this plays out.

For a look at all of today’s economic events, check out our economic calendar.

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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