Natural Gas Weekly Price Forecast – Natural Gas Markets Continue to See Choppy Behavior

Natural Gas Price Forecast Video for 01.05.23

Natural Gas Weekly Technical Analysis

Natural gas markets have gone back and forth during the course of the trading week, as we continue to see a lot of questions asked about the potential of global demand collapsing. After all, if the global economy is going to slow down drastically, it’s likely that we will continue to see a lot of demand destruction. Remember, natural gas is typically soft this time a year anyway, due to a lack of heating demand. If you throw the idea of a lack of electricity production for industry on top of that, natural gas could remain very weak for the foreseeable future.

At this point, it looks as if the market is bouncing around between the $2.00 level underneath, and the $3.00 level above. Ultimately, it’s also worth noting that we are getting ready to have the “death cross” on the weekly timeframe, something that’s somewhat rare. I don’t necessarily think that natural gas is going to collapse from here, but there’s no real reason to get involved quite yet.

Most trading in the natural gas markets will be range bound on short-term charts, so I am waiting for later in the year to look for a bigger move to the upside. Even if we break down below the $2.00 level, the $1.80 level underneath there should also offer support. Ultimately, I believe we have a situation where short-term trading is probably best at this point as the natural gas markets tend to be very quiet during the warm months in the northern hemisphere. Having said that, eventually we will have an impulsive move to the upside that should make for a great trade.

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