Natural Gas Price Forecast – Natural Gas Continues to See Noise

Natural Gas Technical Analysis

The natural gas markets gapped lower to kick off the trading session on Monday, as it looks like we are going to continue to see a lot of volatility in this market. That being said, market participants are going to be paying close attention to the weather and the weather does look like it is starting to break to the upside a little bit, as far as temperatures are concerned in America. That will drive down demand, and that will obviously have a major influence on the price of natural gas.

We are at that time of year when we start to focus on the next contract, which being March and that means that we aren’t too awfully far from the idea of warmer temperatures anyways. We probably have another winter storm ahead of us in the United States, which could drive prices up again, but after that, I think things get really dicey. If the natural gas market were to break down below the $3.50 level, then it could of course be very negative, and we could send this market dropping towards the 200 day EMA and that would be the end of the winter cyclical rally.

Keep in mind, this is a cyclical market most of the time and unless we get something major coming out of Europe along the lines of demanding more natural gas, I just don’t think you have a situation where we are going to hold up over the next couple of months. I do believe it is only a matter of time before we turn around. That’s the typical play every year and I just don’t see this year being any different. That being said, there’s always an outlier.

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