Natural Gas Price Forecast – Natural Gas Markets Stagnant on Holiday

Natural Gas Price Forecast Video for 16-01-2024

Natural Gas Technical Analysis

The natural gas markets have gone back and forth early during the trading session on Monday as we continue to pay close attention to the weather in the northeastern part of the United States. That being said, the market is a little overextended, so it’ll be interesting to see how this plays out.

The $3.33 level has been major resistance in the past and the fact that we are stalling here does make a certain amount of sense. If we can break above the $3.45 level, then maybe we have further to go. Otherwise, the $3.00 level underneath being broken to the downside would be negative. We are awfully late in the year to get overly excited about the idea of natural gas going higher. Because of this, if you are bullish on natural gas you need to be very nimble and be willing to take profit at the first signs of trouble.

So, I think this is a short-term phenomenon based upon a winter snap. If you’ve been following me over the last couple of weeks, I said that there would be a cold winter snap in the Northeastern part of the United States eventually, and that it would cause a spike. Now that it’s happened, the question is whether or not it can sustain any of this momentum. I anticipate not because futures markets are getting ready to roll over into the month of March; therefore, they naturally tend to drop, dragging down the CFD market with it.

Natural gas is being depleted at a pretty quick clip in the US, but most of those wells that have been frozen over the weekend will of course thaw in the next few days, and it’ll only be a matter of a week or two before we’re right back up to the same type of storage capacity. We don’t necessarily have the sell signal yet, but I do think eventually this market falls from here and jumps back into the previous range.

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