Natural Gas Price Forecast – Natural Gas Pulls Back From Top of Range

Christopher Lewis
Published: Apr 24, 2024, 14:04 GMT+00:00

The natural gas market fell early on Wednesday as the market reached the top of the recent range that we seem to be stuck in at the moment.

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Natural Gas Technical Analysis

You can see that the natural gas markets have pulled back significantly during the trading hours on Wednesday. But at this point, I think we’re just going to continue more of the same. We’re just going back and forth trying to sort out what to do, and we are killing time.

This is what is known as at least potentially known as an accumulation phase. The smart money is getting involved right now, waiting for the pump later this year in price, either due to maybe a heat wave in the summer, or if it takes that long, it would be cold weather at the end of the year. Ultimately, the $1.50 level underneath is a major support level that I think a lot of people will be paying close attention to.

That being said, I think you also have to keep in mind that once we get below there, then you start to talk about the possibility that drillers might actually just leave. Quite frankly, if you’re not making money producing, then you’re not producing and then eventually supply comes down. As things stand right now, we’re just killing time between $1.50 and $2.

Yes, I do hold natural gas, but I hold it in the form of an ETF, so I don’t have any leverage. And I can wait a few months if I have to. If you choose to trade it through the CFD market, you can do so in a short term rangebound type of market. If you can watch the charts that closely or just with extremely low leverage, it’s just a part of my portfolio.

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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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