Natural Gas - 02/01/2024

There appears to be a potentially interesting price movement developing within the natural gas markets, which are currently sitting near the bottom of their typical range. Well that is if natural gas has a typical range as this commodity is well known for its highly volatile spikes when nations supplies run short.

Below is the monthly chart which highlights the levels of volatility that can occur within the natural gas markets, particularly when geopolitical crises arise with the Russian invasion of Ukraine being the most recent to send shockwaves through the market.

Now while we certainly aren't going to claim an ability to predict the next geopolitical crises and its resultant impacts, by looking at the weekly chart we can see that the price has settled down since the 2022 shock, following a steady incline until November 2023.

The price has since stabilised and is looking like its on track to build up a steady and reliable growth period. The last couple of weeks have shown strong uniformity, presenting this appealing gradient in the graph below.

I'd be keeping an eye out for this to continue throughout January and keep in mind the huge free area to run above it, leaving plenty of space for healthy profits.