Natural Gas Price Forecast – Natural Gas Continues to Bounce Around

Christopher Lewis
Published: Apr 22, 2024, 13:59 GMT+00:00

The natural gas markets continue to be very noisy, as we are in what could be thought of as an accumulation phase. Ultimately, this is a market that will take patience.

In this article:

Natural Gas Technical Analysis

The natural gas markets rose a bit during the trading session on Monday. In the early hours, it looks like we are going to continue to consolidate overall. Keep in mind this is a market that is in the midst of what could be thought of as a potential accumulation phase.

So, I think a lot of that is coming into fruition as well. The $2 level above, I think it’s a ceiling that doesn’t get cracked any time soon. So, I would venture to say this market probably will react to the 50 day EMA and then the $1.90 level after that. Keep in mind, this time of year is typically low demand, and the fact that we have so much in the way of supply is not going to help.

However, I think this is a nice accumulation phase that you can take advantage of if you choose to do so with an ETF or something that doesn’t have a lot of leverage. Quite frankly, leverage could wipe you out here if you weren’t careful. Short term traders may go back and forth looking at this as a rangebound market, but quite frankly, unless you can babysit the charts all day, you’re going to have a difficult time.

We might get a heat wave or spike in summer that could drive natural gas prices higher in America, but I think the real money is probably made later this year. So, what I have been doing is taking small positions in an ETF and just adding here and there as we continue to see volatility and just simply waiting. It’s part of my portfolio. Nothing more, nothing less.

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?