Extensive forecasts reinforce the minimum demand

Weather models for the next 15 days continue to indicate light demand, with minimal colder weather systems impacting the US. Demand for natural gas remains relatively low, a bearish factor for prices. Industry analysts emphasize that without a shift to colder temperatures, any upward price movement is likely to be short-lived unless supported by bullish developments outside of weather. This trend suggests that traders may find it challenging to achieve a sustainable price increase without more severe temperature drops.

Key levels and market sentiment

The support level of $2,764 remains a critical threshold for natural gas prices. If prices fall below this level, bearish sentiment could push futures down to $2,585, representing short-term downside risk. Conversely, if the market finds stable support, bullish momentum could push prices higher towards the 50-day moving average of $3,078, providing a potential upside target for traders looking for an upswing.

Market Outlook

Given current forecasts and supportive testing, the natural gas market is trending toward a bearish outlook in the near term. Expected light demand for natural gas, coupled with mild weather conditions in key regions, limits the prospects for a sustained rally. Traders should keep an eye out for any weather-related demand spikes or unforeseen market events that could change this trend, but if these do not occur, prices are likely to remain under pressure.