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Natural Gas Price Forecast – Natural Gas Continues to Attempt a Basing Pattern

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Natural Gas Price Forecast Video for 06-02-2024

Natural Gas Technical Analysis

Natural gas markets have rallied slightly during the trading session on Monday, but we are still in the midst of trying to build a bit of a base from what I can see. At this point the $2 level underneath I think is a major support level that traders will continue to pay close attention to, so it is probably worth a small position in this market.

To the upside, you also have to keep in mind that it’s not necessarily a market that is going to be bullish for the longer term. After all, winter is almost over and it has been a bit of a bust. So therefore demand for heating isn’t necessarily something that people are expecting anytime soon. So with that, I would probably be very quick to take my profit. After all, this is a market that is erratic under the best of circumstances, and I don’t think that the current environment brings in a lot of confidence for the bulls.

The top of the overall consolidation is somewhere near the $3 level, perhaps even as high as $3.33, but I don’t know if we get there anytime soon. We would need to see some type of major winter storm in the United States or Eastern Canada to really get things moving in that direction. That being said, it does seem like there is a little bit of fair value around the $2.50 level so I think a move to that level makes a lot of sense, we’ll have to wait and see.

Natural gas, of course, is very finicky and does move to the latest weather report out of the Northeastern part of the United States. So, you have to be a little bit of a meteorologist to understand that. And that, of course, is something that retail traders tend to struggle with. If we were to break down below the $2 level, it could really unwind this market down to about $1.80, which although doesn’t look as likely, certainly would be something worth standing up and paying attention to.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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