Natural Gas Price Forecast – Natural Gas Markets Pull Back

Natural Gas Price Forecast Video for 20.12.23

Natural Gas Technical Analysis

Natural gas markets have fallen just a bit during the trading session on Tuesday as the $2.50 level has offered resistance. Ultimately, this is a region that we have seen a lot of support previously, so all things being equal, this market is expressing a little bit of “market memory” in this range. That doesn’t necessarily mean that we are going to fall apart from here, but clearly we are in a bearish market and we probably need to see quite a bit of work done in this region to build up a base in order to rally.

That being said, if we were to break above the shooting star from the trading session on Monday, that would be a very bullish sign. I don’t necessarily think that will be easy to do, but if it does happen, it’s likely that the market could go looking to the $2.75 level. In general, this is a scenario where I think you continue to see a lot of volatility and of course noise based on the idea that liquidity is starting to disappear, and of course traders will have to step in and take profit heading into the new year.

That being said, the market also has a lot of oversupply, so therefore it’s likely that we continue to see downward pressure. All things being equal, I think we are trying to carve out some type of range for a longer-term move. I think at this point, the $2.00 level underneath is a support level, with the $3.33 level above being a massive resistance. All things being equal, there is quite a bit of noise coming out of this market for the last week or 2 of the year.

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