Natural Gas Weekly Price Forecast – Natural Gas Reaches 50% Level

Natural Gas Price Forecast Video for 04.12.23

Natural Gas Weekly Technical Analysis

Natural gas markets have fallen a bit during the trading week, reaching down to the 50% Fibonacci level from the massive move that we previously had seen. Keep in mind that natural gas had rallied 40% before we pulled back, so we are still 20% off the bottom. Yes, there are a lot of concerns about supply being overdone at the moment, but there’s also the cyclical trade that we will have to pay attention to. It is because of this that I look at natural gas as an investment and not a trade, and quite frankly futures markets are almost impossible to deal with unless you have a large account.

I find this trendline underneath as an interesting place, and I do think that it’s also interesting to see that even though there has been relentless pressure to the downside, the last 3 days of the week has seen quite a bit of support come back into the market. It’ll be interesting to see how this plays out, but I think if we can break above the top of this candlestick, then we could go looking toward the $3.33 level above. If we can break above there, then we could really take off to the $4.00 level. That being said, it’s worth noting that there has been an over expansion of drilling as of late, which also has been a bit of a problem for this market. Regardless, I am still invested in this market for the cyclical trade, probably looking to get out sometime in early January. For short-term traders, this is an extraordinarily dangerous market to be in.

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