Natural Gas Price Forecast Video for 02-01-2024
Natural Gas Weekly Technical Analysis
You can see it’s been a rather bullish week for natural gas as we continue to try to form some type of bottom. I think we are going to find that bottom and I think it’s going to be a range. The $2 level underneath should be support, while the $3 level above is going to be resistance. But I think that’s more of a zone that extends to the $3.33 level.
As we are at the end of the year, there isn’t a whole lot of business being done, and you should also keep in mind that the futures markets are already pricing in February, so we are not that far from the futures markets rolling over into spring. So that’s another reason why I think this range is probably as good as it gets. I don’t think we break out to the upside. Unfortunately, that is something that has not panned out so far as a lack of European supply seemingly is not as big of a deal as people once thought. With this, I think it is still a buy on the dips type of market, but you have to be very patient, and you have to recognize that we are stuck in a range, so keep your position size reasonable.
All things being equal, this is a market that I think you are going to have to be very patient with and therefore you have to look at it more or less through the prism of an investment rather than a trade. Speed is not something that you’re going to see a lot of, but it does warrant a spot in your portfolio every time it drops a bit.
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