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Natural Gas Price Forecast – Natural Gas Continues to Consolidate

By:
Christopher Lewis
Published: Apr 23, 2024, 13:48 GMT+00:00

The natural gas market continues to see a lot of noisy behavior, as we are in a cyclically quiet time of the year. Ultimately, this is a market that has a lot of work to do.

In this article:

Natural Gas Technical Analysis

It appears that the 50 day EMA has come into the picture to offer a bit of resistance early during the trading session on Tuesday as it looks like the market is just going to continue to go back and forth. At this point, I am invested, but I’m investing, not trading. So, what I mean is that I am involved in an ETF that tracks natural gas.

This takes a lot of the choppiness and volatility out of the market, but if you are a range-bound trader, you can use this as a range-bound market to trade back and forth in what would typically be a very quiet time of year. The $2 level above is a major resistance barrier, and I think it’s going to take something rather special, be it a heat wave or fall coming into the picture for the $2 level to be taken out. Underneath we have the $1.50 level offering a massive support level going back multiple years. I think we just go back and forth here. There isn’t a whole lot to say about natural gas other than it’s probably not going to do much for the next few months. We’re just drifting sideways.

So, if you want to sit and watch the charts all day long, you can scout back and forth. But for myself, I’m just looking at the historically cheap price and waiting to get paid. So, I think at that point, you have to keep your leverage down and just be happy with something like doubling your money. Right now, it’s a part of my portfolio, my retirement portfolio as well, but it’s not a huge part.

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.

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