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Natural Gas Price Forecast – Natural Gas Continues to Find Support

By:
Christopher Lewis
Published: May 27, 2024, 13:40 GMT+00:00

The natural gas markets have found a bit of support underneath, as we continue to try to see whether or not natural gas can continue the overall uptrend.

In this article:

Natural Gas Technical Analysis

The natural gas markets have pulled back just a bit during the early hours on Monday, only to turn around and rally in what would be thought of as very thin electronic trading due to the fact that Memorial Day in the United States, of course, takes out a lot of liquidity.

Whether or not we can continue to go higher remains to be seen, but I do think we are getting a stretched market at this point, and I do think that a correction is coming sooner rather than later. I could be wrong, but at this point in time, I’m more than willing to bet on the idea of a pullback to add to an already existing long position I have in an ETF.

I don’t want to have a lot of leverage involved in this market because it’s quite noisy under the best of circumstances. And of course, it’s hard enough to follow the weather patterns here in the United States, let alone from somewhere else in the world. It is a very specific area of the United States typically that moves natural gas. And I’m aware of how overabundant the natural gas supply is. The United States alone could power the world for 400 years. Canada has even more.

With that, it’s not a market that I’m expecting a huge move to the upside, but there are geopolitical concerns that could come into play. But regardless, I do think that this time of year is typically soft and unless we get a heat wave, and it has been hot in the United States, typically this market’s very quiet. We were also at an extreme low. So, I’m looking for value, I’ll buy again in the ETF so I’m not levered. And then I’ll take some profit down the road. Yet again, I think $3 above is like a major ceiling at the moment.

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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