Natural Gas Weekly Price Forecast – Natural Gas Markets Trying to Find Bottom

Natural Gas Price Forecast Video for 11.12.23

Natural Gas Weekly Technical Analysis

Natural gas markets have fallen significantly during the trading week to break down below the crucial $2.50 level. The $2.50 level is also an area around the 61.8% Fibonacci level, so there is a certain amount of interest in this area based upon technical analysis. Because of this, it’s possible that we could see the market move to the upside, but whether or not it leads to the next leg higher remains to be seen due to the fact that so many traders are out there pricing in a massive recession.

It’s been interesting to watch the bifurcation between stocks and commodities, as well as bonds. Commodities and bonds seem to tell us that something bad is coming while stock markets continue to rally. The general takeaway is that not only is there a lot of natural gas out there, but perhaps there will not be much demand for electricity as the industry slows down. That being said, we have had a rather sharp pullback, so it would make a certain amount of sense for the market to turn around and bounce from here, at least in the short term. On the other hand, if we do break down below the bottom of the candlestick, that could open up and move all the way down to the $2 level.

Expect to see a lot of noisy behavior out there, and therefore you need to be very cautious with jumping “all in” into the markets. That being said, I do think it is probably only a matter of time before we get some type of relief rally if for no other reason than exhaustion.

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