Natural Gas Price Forecast – Natural Gas Markets Recover

Natural Gas Price Forecast Video for 18.12.23

Natural Gas Technical Analysis

Natural gas markets have had a move to the upside during the trading session again on Friday, as it looks like we are ready to go much higher. All things being equal, the natural gas markets continue to be very volatile, which makes a certain amount of sense considering the time of year it is. However, you also have to keep in mind that a lot of people have made a ton of money shorting this market and therefore a little bit of short covering may be going on as well as we head into the holiday season. The $2.50 level above is an area that I think a lot of people will pay close attention to, especially as the number is a “midcentury number,”, but we also have the 20-Day EMA sitting right around that area as well.

Any signs of exhaustion near the $2.50 level could bring in a bit of short-term selling, but I think longer term we will probably try to get back to the $3.00 level. Underneath, the $2.25 level is an area of potential support, right along with the $2.20 level. With that being said, the market is likely to continue to be very noisy, and of course focus on short-term weather patterns in the northeastern part of the United States. With that being the case, the market is likely to be noisy and therefore you will have to be very cautious with your position sizing.

There still concerns out there about the European Union and whether or not they will have enough supply, but right now, it looks like supply is pretty massive, as there has been a relatively mild winter so far. With that being the case, we have a situation where we probably will continue to see a lot of choppiness, but at the end of the day, the bullish run that was supposed to happen for the winter happened very quickly and then fell apart. While it does look positive, I would also point out that again, we are heading toward the holidays, and therefore people are willing to take advantage of their profit and get out of their short positions.

For a look at all of today’s economic events, check out our economic calendar.