Natural Gas Price Forecast – Natural Gas Markets Continue to Undulate

Natural Gas Price Forecast Video for 10.02.23

Natural Gas Technical Analysis

Natural gas markets have been very noisy during the trading session on Thursday as we continue to see a lot of lackluster choppy behavior. After all, we have recently settled in at the $2.50 area, which is a large, round, psychologically and important figure. That being said, after this massive selloff that we have seen, one has to wonder how much longer it can go? To say we are oversold is stating the obvious, so it’ll be interesting to see how this plays out. I do think that given enough time we probably have some type of massive shot higher, perhaps driven by a winter storm or sudden cold snap.

That being said, it will more likely than not end up being a bit of a short-term relief rally, and therefore I am willing to sell the first signs of exhaustion if and when we get it. At this juncture, I think we also have to look at this through the prism of the possibility of seasonality affecting price, meaning that the next cold snap might very well be the last one for the northern hemisphere. We are trading the March contract, so that is worth paying attention to as well, and therefore I think that any rally won’t have any significant amount of real momentum behind it.

Looking at the chart, I think the 50-Day EMA would be an excellent place to start shorting if we get that short-term rally. I’m not necessarily thinking that it’s going to happen easily, but sooner or later people will want to take the profit after shorting this market the way they have.

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