Natural Gas Price Forecast – Nat Gas Continues to Slide Within Its Range

Natural Gas Price Forecast Video for 13.06.23

Natural Gas Technical Analysis

Natural gas markets witnessed a marginal dip during Monday’s trading session, with the summer range continuing to dictate price movements. The $2.00 level is being closely watched by traders as a potential support, while the 50-Day Exponential Moving Average is acting as a resistance. Beyond this, the $3.00 level poses a significant resistance and is expected to serve as the upper limit of the recent consolidation range. It’s crucial to remember that natural gas markets typically exhibit subdued activity during the summer months due to the reduced demand for heating in the northern hemisphere.

Given the market’s short-term nature, I anticipate continued fluctuations on shorter-term charts. While a sudden heatwave could cause temporary demand surges, these are unlikely to be sustained. A break above the $3.00 level would be a bullish indicator, although its impact would be short-lived during the summer. However, as the year progresses, the unavailability of Russian natural gas supplies for the European Union could create an upward pressure on prices. The anticipated need for European countries to replenish their reserves is expected to bolster the market. This sets the stage for potential upward movement later in the year. As winter approaches, natural gas is projected to become an attractive trade on the upside. At present, however, the market seems to be confined within a narrow range.

A range-bound trading strategy can capitalize on minor price movements for those engaged in short-term trading. However, it is recommended not to commit substantial capital to this market. With patience, periodic profit-taking can establish a foundation for returns towards the year-end. Eventually, the market is expected to gain momentum and may even attempt to reach the $5 per unit mark. On the flip side, if the market breaks below the $2.00 level, a drop towards the $1.80 level becomes a plausible scenario, given the existence of a support range in that area.

Ultimately, the natural gas market is currently operating within a summer range, with resistance at the $3.00 level and potential support at $2.00. Short-term traders can leverage range-bound trading strategies for minor gains. However, caution is advised, and larger investments should be avoided. As the year progresses, factors such as the limited availability of Russian natural gas for the European Union could push prices higher. Patience may yield rewards, with the market potentially trending upwards to reach $5 per unit. For now, the market remains trapped within a tight range, with the possibility of a decline towards the $1.80 level if the $2.00 support is breached.

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