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Natural Gas Price Forecast – Natural Gas Markets Try to Recover Again

By:
Christopher Lewis
Published: Dec 13, 2023, 15:46 UTC

Natural gas markets have rallied a bit during the trading session on Wednesday, as we wait to see whether or not the buyers will return.

Natural gas pipes, FX Empire

In this article:

Natural Gas Price Forecast Video for 14.12.23

Natural Gas Technical Analysis

Natural gas markets have rallied a bit during the early hours on Wednesday, as it looks like we are trying to recover. Quite frankly, this is a market that is extraordinarily oversold, and therefore I think you have to look at it through the prism of trying to find some type of value. If we break down below the bottom of the candlestick for the trading session, then we could get a move down to the $2.00 level.

As of late, there has been a lot of headlines about an oversupply of natural gas, and winter has been mild so far in the United States. That being said, the market is likely to continue to see a lot of noisy behavior, and therefore I think you got a situation where we will continue to see a lot of chatter. That being said, we can turn around and break above the $2.50 level, then I think that natural gas markets will take off.

I do think eventually that we recover, if for no other reason than short selling will abate, and people start to take profit from taking those positions on. Underneath, if we were to break down below the $2.00 level it would obviously be very negative, and therefore we need to pay close attention to that area. If we were to break down below there, then it’s possible that we could see a complete wipeout but right now I don’t think we have much further to go. That being said, this has been a brutal winter so far for natural gas markets and something has to give.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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