Natural Gas Price Forecast Video for 22-12-2023
Natural Gas Technical Analysis
Natural gas markets rallied on Thursday morning to reach the $2.50 level again. This is an area where we see the 20-Day EMA indicator, and at this point in time I think we have a situation where the market is going to continue to pay close attention to it. If we can break above there, then it’s likely that the market will open up the likelihood of a move much higher. With that being said, the market is also going to have to deal with weather concerns, and the fact that there is a massive glut of natural gas at the moment.
Because of this, and the fact that the $2.50 level previously had been major support, I do think that it is probably a bit difficult to rally significantly from here, and this winter has certainly been a dud. Unfortunately, a lot of the bullish thesis did not pan out this year, and therefore bulls in the natural gas markets have taken a bit of a hit. Longer-term, I think we could go looking to the $3.33 level, but we have a lot of work to do and very little liquidity at the moment to do it in. With that, I would remain neutral or perhaps even out of the market if at all possible, but if we can break above the $2.60 level, we might see a bit of a pickup to the upside and perhaps drive the market higher. In general, this is a situation where I think you have to be very cautious, but selling all the way down here might be a bit difficult after the massive bearish run.
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This article was originally posted on FX Empire
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