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Natural Gas Price Forecast – Natural Gas Continues to Build Support

By:
Christopher Lewis
Published: Apr 19, 2024, 14:28 GMT+00:00

Natural gas continues to see a lot of noisy behavior, but at this point in time, I am still long in this market, with an ETF, as it is a way to benefit when the recovery comes. However, patience will be the biggest issue if you want to trade this market.

In this article:

Natural Gas Technical Analysis

Natural gas markets have rallied a bit during the trading session on Friday, as we continue to see upward pressure from admittedly very low levels. With that being the case, I think you’ve got a situation where each pullback will more likely than not attract buyers, and eventually we could go looking all the way to the 50 day EMA.

This time of year, is typically pretty rough on natural gas traders, as they are just kicking back and forth between two lower levels with demand being pretty weak. That being said, we could get a heat spike sometime this summer that will send this market higher, or in the fall we’ll get more demand coming in the form of heating.

That being said, I have been involved in this via an ETF. I’m not using any leverage whatsoever and I’ll just take my profits as they occur. This is because the $1.50 level has been such a historically important support level. Then I think if we break down below there. You’re going to see something break in the form of drillers leaving the field.

If nobody’s drilling, we’ll get through that supply really quickly. All things being equal, I think we are still rangebound overall. And as a result, I’m fairly neutral in this market. That is a market that looks a lot like accumulation to me. But you also are going to have to be very patient. We just don’t know when it will take off.

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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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