How Low Are Natural Gas Prices Headed ?

Natural Gas Futures--- Natural gas futures in the March contract settled last Friday in New York at 2.84 while currently trading at 2.61 lower for the 3rd consecutive session looking to retest the contract low which was touched on December 21st at 2.55 in my opinion.

I am currently not involved in this commodity, but I'm looking for a possible bullish position so I will be patient as I do think lower prices are ahead despite the fact that we have had a severe cold snap in the Midwestern part of the United States with heavy snows, but the problem is the energy sector has completely collapsed over the last week as oil prices are now down about $7 from the most recent high so avoid this market at the present time as catching a falling knife is very troublesome in my opinion.

Natural gas prices are trading below their 20 and 100 day moving average as the trend clearly is to the downside as I do think prices are limited, but could still possibly trade as low as 2.40 in my opinion as spring is right around the corner as that generally means less demand for this product which puts pressure on prices.

Volatility in natural gas remains high as that occurs in the months of January and February as that's when cold temperatures can spike demand pushing prices higher or the opposite can happen as warm temperatures arrive pushing prices lower so keep an eye on this market for possible a bullish position on the next leg down.

TREND: LOWER

CHART STRUCTURE: POOR

VOLATILITY---HIGH

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