Natural Gas Price Forecast – Natural Gas Markets Have Pulled Back Just a Bit

Natural Gas Price Forecast Video for December 26, 2023

Natural Gas Technical Analysis

Natural gas markets have pulled back just a bit during the trading session on Friday, as we drift into the holiday season dancing around the $2.50 level. The 20-Day EMA is an indicator that a lot of people pay close attention to, and therefore I think it will continue to cause a little bit of volatility.

Natural gas markets have been underperforming all winter, and it will be interesting to see how that plays out over the next several weeks. In the very short term, we have to look at this through the prism of liquidity issues, and of course we have to keep in mind that this is a market that tends to move on short-term movement and news anyway. After all, the natural gas markets have been tied very closely to whether patterns in the northeastern part of the United States, which of course is not overly predictable. In fact, we haven’t bothered seeing snow quite yet.

If we break above the highs of the last 2 days, then it’s likely that the market is looking to the 50-JAMA. The 50-Day EMA is an indicator that a lot of traders will pay close attention to, and if we were to break above there, then the market is likely to go looking to the $2.75 level. On the other hand, if we turn around and break down below the $2.39 level, then it’s likely that we will go down to the $2.20 level, which is an area we’ve seen a little bit of noise previously.

With that being said, be very cautious with your position sizing if you are involved in this market, and then I think this is a scenario where you need to be more cautious than anything else as we have to pay close attention to the idea of where we are on the calendar, and of course the fact that we are getting pretty late in the winter as futures contracts are already certain peak at spring. That being said, I think we have a situation where we could have a little bit of a bounce, but that’s a short-term move more than anything else.

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