Natural Gas Price Forecast – Natural Gas Markets Fall Again

Christopher Lewis
Published: Feb 22, 2024, 14:16 UTC

Natural gas markets have fallen during the early hours on Thursday, as the punishment continues for oversupply in this commodity.

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Natural Gas Technical Analysis

Taking a look at the natural gas market, and here we are again, talking about natural gas dropping. So early in the morning on Thursday, we are down about nine cents, and it looks like we are ready to continue dropping. This is a market that you just can’t trade to the upside from a short-term perspective.

If you’re an investor, then fine. You have an argument here because we are most certainly at an area that a lot of value hunting could be had. Now, whether or not it is something that you can bank on anytime soon, I don’t think so. Plus, we are heading into the time of year where natural gas is going to continue to see a drop in not only demand, but just storage concerns. So really at this point, I think you’ve got a situation where $2 above continues to be a major barrier that will be difficult to break above.

The 20-day EMA above there, of course, is going to be resistance followed by the 50-day EMA and then of course, the $2.50 level. The $2.50 level I think is about as good as it gets between now and probably the middle of summer, unless we get some type of massive heat wave in the United States. The winter has been a complete disaster for natural gas and now we’re just bumping along the bottom. If you’re a short-term trader, look at the $1.50 level underneath as a potential floor. And you also have to keep an eye on drilling counts because there are only so many drillers out there that are willing to do so at $1.75.

So, with that being the case, I think it continues to look very lackluster at this point, quite frankly. I can’t be bothered, but maybe buying an ETF might make some sense. You can just cash out when your money doubles, probably sometime in September or October.

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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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