Natural Gas Price Forecast – Natural Gas Markets Continue to Look for Buyers

Natural Gas Price Forecast Video for 12.01.23

Natural Gas Technical Analysis

Natural gas markets have bounced a bit during the session on Wednesday as we continue to see an oversold market that probably scares short sellers to hang onto. After all, we will sooner or later get a massive bounce, perhaps due to a short-term cold snap. Once that happens, I anticipate that if you are patient enough you should be able to find a nice selling opportunity. After all, the market is decidedly negative, but if we get some type of short covering rally, it can be quite brutal.

On the upside, I would anticipate that the $5.00 level should be important, as it is a large, round, psychologically significant figure that has caused some noise in the past. I would love to see the market rally toward that figure and fail. I would not hesitate to short natural gas in that area but chasing it all the way down here is very difficult at this point. After all, the market has absolutely cratered as of late, so in that scenario it’s difficult to put a big position on.

If we do break down below the $3.50 level, then it’s likely that we continue to see selling pressure in this market, but this situation looks tenuous at best, so therefore I think all we are waiting on is some type of cold to return to the northeastern United States to trigger the next rally. I will not be a buyer of that rally, but I do recognize that it offers a selling opportunity eventually. As far as buying is concerned, I probably will do so again until fall in the northern hemisphere.

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