Natural Gas Price Forecast – Natural Gas Markets Attempting To Rally Again

Natural Gas Price Forecast Video for 11.12.23

Natural Gas Technical Analysis

Natural gas markets have rallied just a bit during the trading session on Friday, as traders are trying to defend the crucial 61.8% Fibonacci level after a brutal beat down. The natural gas markets have been struggling under the pressure of recessionary headwinds, perhaps having people believe that the market is going to demand a lot less natural gas. Having said that, we are also heading into the coldest time of the year, so one would assume that the market will eventually turn around.

That being said, there are a handful of areas above that I would be paying close attention to as far as resistance is concerned. The $2.50 level is the initial target, and then after that we have to pay close attention to the $2.70 level. Anything above there then starts to see the possibility of a new swing higher. However, it’s worth noting that there have been multiple times we have looked like we were ready to turn around and rally, but having said that, we have failed multiple times.

Because of this, you would have to be very cautious about going along with this market, but it is only a matter of time before we have to turn around, otherwise natural gas might be free before it’s all said and done. It seems very unlikely that we are just simply going to give away natural gas, so it is probably a market that is going to be noisy, but eventually traders will get paid for playing what looks to be an eventual bounce.

If we break down below the lows of the Thursday session, that would be an extraordinarily negative turn of events, considering just how far we have sold off in the meantime. The natural gas markets are suffering at the hands of the idea that we are heading into a vicious recession, just as the crude oil markets are. With that being said, energy markets continue to struggle, but sooner or later they become so cheap that people will feel the need to get involved from a simple valuation standpoint.

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