Natural Gas Price Forecast – Natural Gas Continues to Be Noisy

Christopher Lewis
Updated: Jun 20, 2024, 15:48 GMT+00:00

The natural gas markets are continuing to see a lot of noise in the markets, as the market participants try to work out the heat wave in America, and of course the lack of supply in the European Union. With this, I am looking for dips to take advantage of, but only in particular ways.

In this article:

Natural Gas Technical Analysis

Natural gas markets fell initially during the early hours on Thursday, but then turned around to show signs of support. With that being said, the market is likely to continue to be very noisy, but the $3 level above is a significant barrier that I think is going to be very difficult to overcome. Keep in mind, we’re in the midst of a heat wave here in America, and that does have an influence on pricing, but we also have to also keep in mind that this time of year generally isn’t that positive for natural gas after all.

You have a situation where, unless it’s hot, the demand for natural gas, i.e. electricity, is going to be somewhat limited. Most people are outside. Also, another thing to keep in mind is, if the economy is slowing down, the demand for natural gas will drop. On the positive side though, we have a shortage in Europe yet again, and at this point in time, it seems as if that could come into the picture over the next several months.

We’ll just have to wait and see. So, I do remain positive on natural gas, but I don’t want to pay these higher levels. As for myself, as documented on this channel for quite some time, I’ve been long of this market via an ETF, have taken half profit, and now I’m just waiting for the next plunge lower to get involved again.

Later this year we’ll see a spike, that’s a cyclical thing as colder temperatures come to the northeastern part of the United States driving up demand and I would like to participate. That’s why I still have half of my position on just in case but if we do fall towards the $2.50 level, I’ll start to look at finding a bit of value.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?