Natural Gas Price Forecast – Winter Storm Brings Higher Pricing

Natural Gas Price Forecast Video for 05-01-2024

Natural Gas Technical Analysis

The natural gas markets have gone straight up in the air during the trading session on Thursday as traders prepare for the winter storm coming to the northeastern part of the United States. That being said, this will be a temporary spike, so you either have already been long in this market over the last couple of days or you’re waiting for it to fall back down. Quite frankly, the futures markets are pricing in February, and there is plenty of supply, so even though this has been a very strong move to the upside, it still really hasn’t broken out of that range, and I don’t expect it to unless we get some type of major event.

The markets sooner rather than later will be focusing on the month of March when consumption of natural gas just falls through the floor. Because of this, I’m not overly impressed. I could have gotten involved a couple of days ago, but the winter has been such a bust in the natural gas markets that there’s really no point in playing with this game other than being a range-bound trader. If you are a range-bound trader, you are getting close to the top of that overall range. Can we break above the $3 level? Of course, we can, but at the end of the day, the upside would become even more limited in that general vicinity.

To the downside the 50 day EMA sits right around the $2.65 level, so that might be your short term support. I don’t expect to see a lot of follow through in this move, and certainly would be stunned if we broke above the $3.30 level, because we would need to see even more of a winter storm coming. Keep in mind that certain parts of the northeastern part of the United States are on the border of getting snow or rain, much like where I live, so this storm could be a bit of a bust. If it’s not a heavy storm over the weekend, natural gas markets will turn around just as quickly as they rose.

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