Natural Gas Price Forecast – Natural Gas Markets Slice Through Major Support

Natural Gas Price Forecast Video for 29.12.22

Natural Gas Technical Analysis

Natural gas markets have collapsed during trading on Wednesday, as it looks like we are finally going to see the US contract act like a domestic market. With Freeport opening up, it allows more flow into the LNG markets worldwide, and therefore Europe becomes a lot less of a burden on everybody else. Beyond that, we just got through a major winter storm in North America, and it seems as if it was not as devastating as people thought it would be.

Natural gas markets recently had seen a perfect storm when it came to demand, with the war in Ukraine, a couple of refineries in the United States down for maintenance, and inflation raging. Now that everybody expects the economy to fall apart, industrial demand for natural gas certainly will drop, and despite the fact that we are in the “high season” cyclically for natural gas, we had been so elevated that a sharp selloff actually brings us back to something closer to normal. Quite frankly, for the last several years, this $4.50 level would be the high of the year.

Because of this, I think we have further to go, perhaps opening up a move down to the $4.00 level, and I would also believe that the following $4.50 level above should offer a bit of resistance going forward. Fading rallies continues to work, as the momentum is most decidedly to the downside and this is actually started it kind of ugly. Yes, there will be a bounce eventually, but let it do that, step aside for a day or two, and start shorting the first signs of weakness again, as that has worked quite well recently.

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