Natural Gas Price Forecast – Natural Gas Markets Try to Rally

Natural Gas Price Forecast Video for 03.04.23

Natural Gas Technical Analysis

Natural gas markets have rallied a bit during the trading session on Friday, as the $2.00 level underneath will offer a certain amount of support. Alternatively, this is a market that continues to see a lot of noise in that area as it is a large, round, psychologically significant figure. Ultimately, if we do rally from here, it’s probably more or less going to be a “fade the rally” type of situation. I do think that this is a situation where we have the 50-Day EMA sitting right around the $2.81 level and dropping. Above there, we then have the $3.00 level, which is a large, round, psychologically significant figure as well, and will attract a certain amount of attention.

Looking forward, I think any rally at this point in time will more likely than not end up being a situation that is just simply more of the same back-and-forth behavior. The market will probably continue to be hesitant as we are in warmer temperatures now, therefore the demand for natural gas will continue to drop. Furthermore, the global demand from an industrial side will also be very weak. In other words, I do think that any rally at this point in time should be thought of as a “bear market rally”, and therefore I’ll be waiting for signs of exhaustion in order to start shorting again.

The market is rather volatile, but quite frankly we are so oversold at this point that you need a little bit of a bounce in order to get a reasonable return on any short position. Even if we were to break down below the $2.00 level, then it’s likely we go down to the $1.80 level.

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