Natural Gas Price Forecast – Natural Gas Markets Break Higher

Natural Gas Price Forecast Video for 28-12-2023

Natural Gas Technical Analysis

Natural gas markets rallied on Wednesday as it looks like colder temperatures are coming to the northeastern part of the United States. This could have a major influence on the markets, at least in the short term. That being said, the market loves to trade on short-term weather patterns more than anything else, so therefore you have to be attuned to meteorological reports to make decent trades. The idea that the winter was going to be something very difficult for the Europeans has come and gone, as we are already starting to look forward to spring in the futures market. True, there may be a sudden shot higher occasionally, but that should end up being a short-term phenomenon.

The 50-Day EMA sits just above and it could offer a bit of resistance. That being said, if we were to take that out then I think we could really start to pick up momentum. I also believe that we are in the midst of carving out a larger range for the market, with the $2.00 level underneath the floor, and perhaps the $3.33 level above being the ceiling. With that in mind, I do like the idea of going along here, but I would only look at it as a short-term trade, because the window of opportunity for natural gas to really take off for the winter has come and gone. Remember, even the CFD markets are focusing more or less on the futures markets, and they are well beyond New Year’s Day at this point.

Short-term dips probably offer support down to the $2.40 level in the spot CFD market, if we were to break down below there, then things get ugly again. That being said, you can also make a strong argument that this could just simply be a short covering move, as traders are trying to book gains heading into the new year, to report to either superiors or investors. All things being equal this is a very strong candlestick for the day, so it more likely than not will see some type of follow-through, but the question is how far can we go?

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