Breaking Down the Natural Gas Futures: What’s Next for Your Investments
Since my last analysis on Nov. 19th, 2024, the Natural Gas futures have followed the predicted bullish trend, with prices steadily rising. This positive momentum is driven by expectations of a decline in U.S. production due to the impact of the COVID-19 pandemic on demand.
However, recent forecasts suggest that U.S. natural gas producers will ramp up output in 2025, leading to a potential increase in prices. Analysts anticipate a more than 40% surge in average annual gas prices next year, fueled by rising demand from export plants.
Despite these promising indicators, the natural gas futures market has shown some volatility, with sharp movements observed in recent days. A double top formation on the daily chart signals a possible bearish trend ahead, especially if prices break below key support levels.
Looking ahead, the immediate support for natural gas prices is at $3.4, followed by $2.835. Staying above these levels could lead to a bullish move, while a breakdown might push prices into bearish territory.
Analysis: The natural gas futures market is poised for potential ups and downs in the coming weeks, influenced by production trends and demand dynamics. Investors should proceed with caution and consider the risks involved in trading natural gas.