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Natural Gas Price Forecast – Natural Gas Continues to Look For Buyers

By:
Christopher Lewis
Published: Apr 17, 2024, 13:48 GMT+00:00

The natural gas markets continue to struggle with anything close to momentum at the moment, as the market is in a cyclically weak time of year, and of course you have to take into account the oversupply issues at the moment.

In this article:

Natural Gas Technical Analysis

The natural gas market continues to just bounce around above the $1.60 level and more importantly, the $1.50 level below there, which is a historical support level. Natural gas has no real shot at breaking out to the upside in the short term because, quite frankly, demand is going to fall through the roof here in the northern hemisphere as temperatures are finally warming up a bit.

With that being the case, a heat spike, in the middle of summer might cause a little bit of a rise in price, but the real money is probably made in the fall. This is a great area to accumulate non levered positions such as an ETF. And that’s exactly what I’m doing. I recognize the day to day noise doesn’t really matter.

Cyclically speaking, we should see a bit of a bump later this year. I think a lot of FOMO comes into the market if we can break above the $2 level as well. So that’s really your key to understanding when your profits are going to come in the next couple of months. I would not be surprised at all to see a lot of back and forth.

So being overly levered is probably a dangerous thing. If you are trading the CFD market, then just make sure your leverage is under control. Continue to look at this as a rangebound market between roughly $1.50 and roughly $2 and trade accordingly. This might be a good way to pad your account a little bit with its results for the year, but it’s not going to be a major part of your portfolio.

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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