Natural Gas Price Forecast – Natural Gas Markets Continue to Slide
Natural Gas Price Forecast Video for 26.01.23
Natural Gas Technical Analysis
Natural gas markets have fallen rather hard during the last several weeks, although not all at once. It’s been more of a steady grind lower, and now during the Wednesday session, we have finally broken below the $3.00 level on the front contract. It has been somewhat freakishly warm during the last several weeks in both the European Union and the United States, save for a couple of random days in America. This has definitely had its part to play in this market, and it occurs to me that we are back to trading the weather again.
It’s also worth noting that we are getting very close to the end of winter, and that could mean that we just never get the relief rally that I hoped for. It’s a little early to call for that, but we are already starting to trade the March contract. In other words, time is running out. Any rally at this point in time begs to be sold, and on the first signs of exhaustion I will do exactly that. Where the bottom is, I’m not really sure, but one would have to think that we can’t go below zero, this is not crude oil after all.
The 50-Day EMA is at the $4.64 level and falling. I suspect that could be a nice target for any type of massive relief rally, but I will not be participating. What I will be waiting for is some type of selloff after a move like that. I don’t know if we are going to get it at this point. Sometimes, the markets just blow past you, which is fine because we have plenty of other assets to trade.
For a look at all of today’s economic events, check out our economic calendar.