Natural Gas Price Forecast – Nat Gas Continues to See Supportive Action

Natural Gas Price Forecast Video for 04.07.23

Natural Gas Technical Analysis

The trading session witnessed a modest recovery in the natural gas market as it found support from the 50-Day EMA after initially gapping slightly lower. This development indicates a potential upward movement toward the significant resistance level of $3.00. However, it’s important to note that breaching this level might prove challenging. Should the market surpass this hurdle, it could propel toward the 200-Day EMA, reaching approximately $3.65.

The prolonged consolidation of natural gas suggests the formation of a bottoming pattern, presenting opportunities for investors and traders alike. Short-term dips in the market are viewed as favorable buying opportunities due to the presence of strong momentum. Additionally, the reduced supply of natural gas from Russia to Europe has resulted in a need for replenishment, further supporting the market’s outlook. As the fall season approaches, the European Union is likely to turn to the United States to purchase liquefied natural gas, thereby bolstering market fundamentals. With solid support at the $2.00 level, there is a reasonable expectation for the market to double between now and November.

When considering natural gas as an investment, it is crucial to adopt a longer-term perspective rather than seeking short-term trade. Mitigating the risks associated with the market’s inherent volatility can be achieved by trading the UNG ETF or similar instruments to avoid leverage problems. While futures or leveraged CFDs may be options, it is more prudent to seek buying opportunities during market dips. Not only is a basing pattern forming, but there has also been a significant increase in volume in various ETF markets, indicating a classic accumulation phase.

In summary, the natural gas market displayed a slight rebound in Monday’s trading session, receiving support from the 50-Day EMA. The market’s trajectory suggests a potential move toward the $3.00 level, which is expected to pose significant resistance. The consolidation phase of natural gas, coupled with the need for replenishment in Europe, presents buying opportunities. However, it is important to exercise caution, adopt longer-term investment strategies, and manage risks in this volatile market.

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