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Natural Gas Price Forecast – Natural Gas Markets Have Gapped Higher to Kick Off the Week

By:
Christopher Lewis
Published: Jan 23, 2023, 15:35 UTC

Natural gas markets have gapped to open up the Monday session, showing signs of strength again as we are hanging around the $3.50 level.

Gas natural, FX Empire

In this article:

Natural Gas Price Forecast Video for 24.01.23

Natural Gas Technical Analysis

Natural gas markets have gapped to the upside on Monday, as we continue to see a lot of noisy behavior in this market. After all, we have had a major winter storm in the United states, so that does help the idea of demand and I think we may see a little bit of upward momentum, at least in the short term. This to me would be a nice selling opportunity given enough time, and quite frankly this is a market that has been oversold, so a bounce is not only likely, it’s probably necessary at this point.

The $4.00 level is a large, round, psychologically significant figure, and an area where we have seen some noise in the last few weeks. On the other hand, if we were to break above that level, then you could see that the market opens up the possibility of going up to the $5.00 level, which is also a large, round, psychologically significant figure, but it is also where we have the 50-Day EMA hanging around. The 50-Day EMA of course is an indicator that a lot of people pay close attention to, so I think this is probably a situation where you have a lot of is just waiting to happen, but right now I’m willing to step on the market every time it rallies.

Ultimately, this is a situation where I’m just waiting for a nice shorting opportunity again, because quite frankly I think it is only a matter of time before we get there. Patience will be the most important part of any trading system right now, and I do think that you will get an opportunity over the next several sessions. Regardless, I have no interest in trying to buy this market.

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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