Natural Gas Price Forecast – Natural Gas Markets Continue to Go Sideways

Natural Gas Price Forecast Video for 13.02.23

Natural Gas Technical Analysis

Natural gas markets have done very little on Friday, as we continue to do small movement type of days. Because of this, you will have to look at this through the prism of whether or not we are forming a bottom, or if we are going to break down. The $2.50 level looks to be a bit of a magnet for price, therefore I think you should be paying close attention to the idea of whether or not we get any type of momentum. If we get some type of move to the upside, then it’s possible that we could be sellers at the first signs of exhaustion.

When you look at the chart, take a look at the 50-Day EMA above, because it could be a significant barrier. I would love to short this market anywhere near there, but quite frankly we just don’t have the momentum to get anywhere. We are at extreme lows, and although I think that the natural gas markets initially bounce, there are no signs of it yet. If we were to break down below the $2.35 level, then we could drop down to the $2.00 level. I like the idea of taking advantage of rallies that show signs of exhaustion, and that right now is the only play that I see in the market.

Keep in mind that we are getting awfully close to springtime, and that will drive down the demand for natural gas. Any rally that we get now should be thought of as a bear market rally, perhaps kicked off by the next winter storm, which could very well be the last one.

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