Natural Gas Price Forecast – Natural Gas Markets Rollover

Natural Gas Price Forecast Video for 29-01-2024

Natural Gas Technical Analysis

The natural gas markets initially tried to rally on Friday but gave up gains rather quickly. The $2.50 level seems to be an area where a lot of people would be interested in the market as it is essentially fair value in the overall consolidation range, with the $2 level underneath being massive support and the $3 level, and then the $3.33 level, both offering significant resistance. Ultimately, this is a market that given enough time is going to have to come to grips with the idea that perhaps the winter has been a complete bust. The massive snowstorms and cold weather failed to show up again, and therefore I think we’re about to head into some type of trading range. That does make sense.

Natural gas likes these ranges over the longer term and therefore, I think you’ve got to look at it through the prism of a market that is trying to find its equilibrium. I would suggest that the $2.50 level is its equilibrium at the moment and therefore since we are just below there, I would assume that we’re just going to consolidate sideways. Quite often, this market does that so it would not be a huge surprise either way. With this being the case, I think you have to look at this market through swing trading eyes instead of trying to get too aggressive on short-term charts as the noise is deafening at times.

There’s really nothing out there to move the natural gas markets at the moment. So, what I prefer to do is wait till it gets to the outer edges of its range and trade accordingly in a somewhat longer term range bound system. Natural gas is a very volatile market, obviously, and if we get some type of massive weather related event in the northeastern part of the United States, it can move the market quite rapidly. So, you always want to be cautious about your position size in this market as you can get into a lot of trouble rather quickly.

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