Natural Gas Price Forecast – Natural Gas Markets Stagnant

Natural Gas Price Forecast Video for 02-01-2024

Natural Gas Technical Analysis

As you can see, natural gas markets have done very little during the trading session on Friday, which is not a huge surprise. It’s the last trading session of the year. And quite frankly, most traders are worried about squaring up positions before heading home for the holiday. At this point in time, I would not read too much into the price action, but it is worth noting.

We have broken back above the $2.50 level. So there’s the possibility of a little bit of support underneath due to that. The 50 day EMA above will be resistance. And if we can break that, it would be a bullish sign. The 20 day EMA below sits just above the aforementioned $2.50 level. So that probably offers quite a bit of support. Going forward, you have to keep in mind that with the futures markets pricing in February,

We’re already at a point in the year where any major thrust in the winter is going to be short lived at best. Probably something due to a winter storm in the Northeastern part of the United States would be the best case scenario. And even then, it will end up being a short term buying opportunity. I think over the long term, we are trying to carve out a range underneath the 2.00$ level that looks to be very supportive and above the $3.33 level is very resistant. I think we’re probably just going to bounce around all year in this range because there is an oversupply of natural gas. Earlier this year, there were thoughts that European lack of supply was going to be a major driver of price again, but that has not come to fruition. So at this point in time, it looks like the market just remains very choppy and short-term focused.

Over the next couple of trading sessions, I would not expect a lot unless of course weather patterns change, but currently in the United States, in the northeastern part, it’s been rather warm. Until that changes, I don’t think that natural gas has the ability to pick up a lot of momentum.

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