Natural Gas Price Forecast – Natural Gas Dips Only to Find Buyers

Natural Gas Price Forecast Video for 01-02-2024

Natural Gas Technical Analysis

The natural gas markets have initially dipped a bit, only to turn around and show signs of life. By doing so, it looks like the $2.25 level offers a little bit of support, but I think that ultimately, the overall range is probably between the $2 level and the $3.33 level. The $2.50 level seems to be a bit of a magnet for price, perhaps what we could call fair value, and therefore I think we could bounce from there. In general, I think that the $2.50 level will be an area that we see multiple times throughout the year as natural gas does tend to range for quite some time overall. As it’s like a magnet for price, one would have to assume there are a lot of options being traded there as well.

All things being equal, this market is closer to the bottom, so it could rally from here. It’s a short-term trade though, it’s not something you want to hang on to forever, and I believe that natural gas will continue to grind back and forth. In general, this is a scenario where you look at the winter being almost over and such a huge disappointment for those who are bullish on the natural gas markets. Now we have to carve out a range for the year, that is what I think we are doing.

And as we are closer to the bottom than the top, I think it makes sense that we get a little bit of a recovery. It’s not necessarily something that I wanna hang on to, but I do recognize that the proclivity of this market is to probably bounce from here. More likely than not breaking down below the $2 level would be catastrophic and not something that I see happening anytime soon. The market has sold off quite drastically, but we also have to worry about the Middle East kicking off some type of panic rally because the overall shipping and transportation systems could be threatened due to an escalating conflict.

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