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Natural Gas Price Forecast – Natural Gas Markets Plunge Again on Friday

By:
Christopher Lewis
Published: Feb 23, 2024, 16:26 GMT+00:00

Natural gas markets fell during the trading session on Friday, as we continue to see plenty of negativity.

In this article:

Natural Gas Technical Analysis

Taking a look at the natural gas markets you can see that we have fallen quite a bit during the trading session on Friday, as it looks like we are ready to drop from here. The $1.50 cents level underneath, I think, is going to be a major support level. And a lot of people will be paying close attention to it. Short term rallies at this point in time will continue to be selling opportunities with the 20 day EMA above offering resistance right along with the $2 level. If we can break above there, then possibly we could go higher, but at this point in time, it is a fade the rally market.

Longer term traders who are more inclined to buy and hold, may wish to try to find some type of ETF in order to get long. I don’t see a situation where you want to be levered. Although between now and the end of winter, there would be a situation where we get a storm that causes a spike, but that’s probably as good as it gets. After all, natural gas is very abundant and storage is very small at the moment, and therefore I think you’ve got a situation where really the only thing that comes into the picture to lift natural gas I think is eventually when drillers stop because they do not want to make the effort if they’re not going to make any money.

With that being said, I think $1.50 is crucial to pay attention to, because below there, then really, who’s left to sell to? You could say that now. I don’t know if I would short this market anytime soon. Above $2 could bring in some FOMO to $2.50, but between now and then I expect a little bit of base building, as we are at extreme lows historically speaking, and therefore some people will be interested. However, caution is the better part of valor when it comes to trading natural gas these days.

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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