Natural Gas Price Forecast – Natural Gas Markets Plunge From Top of The Range

Natural Gas Price Forecast Video for 17-01-2024

Natural Gas Technical Analysis

As you can see, the Natural Gas markets have shown themselves to be a little lackluster and it looks like we are starting to come back down from extreme strength. At this point, that does make a certain amount of sense, considering that the market has been so overdone to the upside due to the idea of storms in the east. Therefore, I think you have to look at this through the prism of a market that, you know, probably has to reach towards the 50 day EMA, maybe even $2.50, depending on your CFD broker. All things being equal, I don’t have any interest in trying to get too cute with this.

The market reached the top of the range, but it is now pulling back. It is a potential selling opportunity, but it’s short term and most Natural Gas trading is going to be short term going forward. I do think that we have an overall trading range that we will be in for the rest of the year with $3.33 or so being the top and the $2 level underneath being the bottom.

Right now, I do think we’re going to head towards the mean right in the middle of that overall range. As temperatures start to normalize, we will start to see a lot less in the way of demand. Remember, natural gas is a highly supplied market, and it is not a market that there is any concerns whatsoever about a lack of supplies. So, with that being the case, it just doesn’t make any sense that Natgas continues to go higher.

We’re at the top of the range and I do think we will pull back. After all, the oversupply natural gas is a well-known concern for markets in this sense. Now that temperatures are going to start normalize, that will have traders focusing on the oversupply of natural gas more now than before, and pricing should start to show that again.

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