Natural Gas Price Forecast – Natural Gas Has a Quiet Start to the Week

Natural Gas Price Forecast Video for 28.03.23

Natural Gas Technical Analysis

Natural gas markets have done very little during the trading session on Monday, as we continue to drift lower. Keep in mind that the $2.00 level underneath is a large, round, psychologically significant figure, and an area that obviously would attract a lot of traders. That being said, we could drift down below that level, but I would anticipate a short-term bounce. In fact, it’s possible that we could see this market head into a consolidation area between the $2.00 level underneath, and the $3.00 level above. The 50-Day EMA is sitting right there as well and drifting lower. That could be dynamic resistance.

Looking at this chart, it’s obvious that there is a lot of negativity in this market, but we have sold off so drastically you have to ask the question “Exactly who is left to start selling again?” Because of this, I think the best way to play this market is looking for short-term rallies to show signs of exhaustion that we can start selling. If we do break above the $3.00 level, then I think it’s probably only a matter of time before we see plenty of exhaustion that we can take advantage of. Quite frankly, I would love to see this market make a rally toward the $4.00 level, but I think it’s very unlikely to happen given the fact that we are heading in a cyclically weak time of year.

With temperatures warming in the northern hemisphere now, it will drive down demand quite drastically. Furthermore, it’s worth noting that industrial demand will probably slow down if we continue to see the global economy suffer.

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