Natural Gas Price Forecast – Will The Destruction Ever End?

Natural Gas Price Forecast Video for 19-02-2024

Natural Gas Technical Analysis

The natural gas markets have done very little during the trading session on Friday as we continue to look for the bottom of the market which at this point in time might be the core of the earth. The $1.50 level at this point in time looks like a very realistic possibility, which is astonishing considering that we have seen so much selling pressure that you have to ask who’s left to sell at this point. Sooner or later there is going to be a ripping short covering rally. Somebody big will get out of this market and everybody else will follow.

That’s not necessarily something that you can predict and it’s not necessarily something that you can count on but as a general rule when you see this type of meltdown, that does happen. You can see this market bounce to the two dollars level quite easily, and still not even flinch. The moving averages are all straight down, which is something that you don’t see very often also. So that’s something to keep an eye on. Nonetheless, I do think that you need to wait for a longer term signal to start buying natural gas. It’s just a waste of time right now. You can’t short it.

I’ve been saying that since $2, but realistically looking at the chart, all of the smart money got into this a long time ago. So now we have to ask questions about, sooner or later, when will the drillers stop drilling? Because they will at this point. There’s no money in drilling natural gas. If you’ve ever wondered what that flame was on the top of a drilling rig in the Gulf of Mexico, it’s natural gas being burned off. That’s how much there is.

So I’ve never understood the bullish case for natural gas other than temporary seasonal trades. But quite frankly, where I live, there’s natural gas in the drinking water in a lot of places. So it’s not exactly a rare commodity, but nonetheless, it can’t be free either. Sooner or later, nobody drills it. So I do think a balance is coming, but I would look for the setup on the weekly chart, not the daily.

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