Natural Gas Price Forecast – Natural Gas Markets Pulled Back Slightly

Natural Gas Price Forecast Video for 21.12.23

Natural Gas Technical Analysis

Natural gas markets initially pulled back just a bit during the trading session on Wednesday, only to turn around and show signs of life. We are hanging around the 20-Day EMA, which of course makes technical trading a bit interesting at this point, and of course we are also hanging around the $2.50 level. The $2.50 level is an area that a lot of people pay attention to due to the fact that it is a “midcentury mark”, and of course it is an area that we have seen previous support, and it now offers a significant amount of “market memory” where we would see resistance.

In general, this is a scenario that we are going to go back and forth and perhaps try to sort things out between now and Christmas. The Monday session of course will be closed, and I think a lot of liquidity will have drained out of the market. If we were to break above the $2.65 level, then it’s likely that we would see a little bit of follow-through. On the other hand, if we were to break down below the bottom of the candlestick from the Tuesday session, I could send the market plunging down to the $2.20 level.

All things being equal, I think we continue to see a lot of noisy behavior around this area, as traders try to sort out whether or not a recession would drive down the possibility of losing demand due to a lack of electricity used by industry. On the other hand, we also have to worry about whether or not winter is going to be cold enough to drive up the demand. So far, it’s been rather mild in America.

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