Analyzing the Near-Term Prospects of Natural Gas Prices Amidst Recent Market Activity

Wednesday, 21 February 2024, 05:37

The recent downtrend in natural gas prices has been relentless, reaching a 3½-year low due to various factors including a warmer winter and operational issues at the Freeport terminal in Texas. However, a potential reversal may be in sight as price action shows signs of a correction and technical indicators hint at a shift in bias towards buyers. Traders are closely monitoring the upcoming transition from the March to April futures contract for possible trading opportunities and market dynamics.
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Analyzing the Near-Term Prospects of Natural Gas Prices Amidst Recent Market Activity

Natural Gas Prices Current Outlook

The selling since the end of January has been rather unrelenting. And that saw natural gas prices sink to a 3½-year low at one point earlier this week. A much warmer winter has been all the rage and the shutting down of the Freeport terminal in Texas at the end of last month did not help either.

Potential Reversal in Sight

  • The recent market activity suggests that a reversal in natural gas prices may be imminent.
  • Technical indicators show signs of a correction and a shift in bias towards buyers.
  • Traders are watching the transition from the March to April futures contract for trading opportunities.

Purely from a technical standpoint, that could give some room to work with for buyers - at least in the near-term. A sudden shift in the bias could lead to a squeeze higher before traders reevaluate the situation once again. Besides that, do keep in mind that we will see the March futures contract roll over into the April futures contract (which are trading higher) later this week. So, that does add some trickiness in reading the price action ahead of the end of the month.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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