Natural Gas Price Forecast – Natural Gas Markets Slam Into Support

Natural gas markets continue to look horrible, as we had reached down to the $3.64 level before bouncing. Keep in mind that natural gas is highly sensitive to the weather forecasts, and with milder temperatures in the United States, it is going to be difficult for natural gas to continue going higher. While there are major problems with gas in Europe, natural gas is overly abundant in the United States, and that is with this contract is, natural gas in the United States.

NATGAS Video 27.12.21

Just above, you can see that the 200 day EMA sits at the $4.12 level, and I think that will be the top of the range that we are in right now. Any move towards that area almost certainly will attract sellers, including myself at the first signs of exhaustion. The triangle from above has a “measured move” down to the $3.00 level, which also happens to be a place where the market tends to visit from time to time. With all that being said, I suspect that we probably have a “fade the rallies” type of situation going forward, as the market simply cannot get out of its own way. We are already trading the January contract and getting ready to roll over to the February contract.

Quite frankly, the temperatures in the United States have been warm enough that it has made the entire winter a bust, and the only reason that we had gotten to higher levels to begin with was hurricane issues. Now that that has been sorted out, there is no reason whatsoever for natural gas to remain bullying.

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