Natural Gas Price Forecast – Natural Gas Markets Get Hammered

Natural gas markets have fallen significantly during the course of the Thursday session, losing over 5% rather quickly. At this point, the market is sitting at the $3.73 level, and it looks like we are going to continue grinding lower, perhaps trying to take out the support level underneath at the $3.60 level. If we break down below there, then the market is likely to go heading towards the $3.50 level, and then the $3.00 level. The $3.00 level is the target based upon the triangle above, and therefore it makes quite a bit of sense that we get down there.

NATGAS Video 24.12.21

If we do rally from here, the 200 day EMA at $4.12 should offer significant resistance, and therefore I would be looking to sell the first signs of exhaustion in that general vicinity. Nonetheless, I have no interest whatsoever in trying to buy the natural gas market, because temperatures in the United States are rather mild, and therefore demand continues to slip.

The contract we are trading is January, and we are getting ready to rollover, so we are getting deep into the winter contract already, meaning that natural gas is probably going to continue to look soft in general. I look at short-term rallies as selling opportunities, just as I would look at the breaking of the support level underneath as a selling opportunity. I have no interest whatsoever in buying natural gas, we have peaked for the winter. Given enough time, I think you should have plenty of opportunities to short this market going forward. The attitude of this market is significantly negative, and I think that is going to continue to be the way it is over the next several weeks.

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