Natural Gas Price Forecast – Natural Gas Continues to Bounce

Christopher Lewis
Published: Apr 3, 2024, 14:00 UTC

The natural gas markets bounced a bit during the session on Wednesday, as we are looking at this from the prism of an investment more than anything else.

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Natural Gas Technical Analysis

We have seen a little bit of bullish pressure early during the trading session on Wednesday in the natural gas markets as we continue to bounce from an extraordinarily low level. At this point in time, natural gas is something that you can trade around, but you have to be willing to hang on to the position for quite some time.

After all, natural gas has been dead in the water for a long time now and the supply is extraordinarily high. However, tensions in the Middle East are starting to pick up and that will have people looking at natural gas through a little bit different prism. Furthermore, it’s gotten to the point where drillers are starting to step away from the field so it’s probably only a matter of time before we rally anyway.

That being said, I think this is a short term rally. I myself am actually involved in an ETF, so I can hang on to this through the gyrations. Am I excited about the move that I see right now? Not necessarily. Yes, we are forming a little bit of a double bottom, but the reality is that we have more than enough natural gas at the moment. This could be short covering or this could be geopolitical trading.

This could be a lot of different things, but at this point in time, I don’t think that we truly break out for a huge move. However, I am involved in that ETF, and if we do, then I’ll just simply collect my profit that way. Whether or not you can trade this environment, maybe, but you are going to have to be very nimble. You’re going to have to realize that at the first signs of trouble, you can’t be long of this market.

Shorting is easier, but you need a little bit of a bounce in order to do so, and I think that’s probably what you see coming up, especially as the 50-day EMA above should end up offering a little bit of a barrier, and most certainly, the $2 level will.

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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.

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