Natural Gas Price Forecast – Natural Gas Continues to Power Higher

Christopher Lewis
Published: May 23, 2024, 14:04 GMT+00:00

The natural gas markets have rallied again in the early hours of Thursday, as we continue to see hotter than usual temperatures in the USA.

In this article:

Natural Gas Technical Analysis

You can see it looks like we’re going to hand it $3 now. It is a bit of a stretch this time of year for natural gas, the rally the way it happens, but there are some concerns about supply in Europe and therefore this has admittedly jumped into this market.

I don’t know how much further we can go, but in all fairness, I’ve said that for about a week now, so I am getting a little bit nervous about this overdone trade. And I think that the $3 level might end up being a massive barrier. It is an area that we’ve seen a lot of action in previously, so any signs of exhaustion in that area could be a warning sign.

I like the idea of buying dips, and I still have some of my ETF position, so I’m happy. I just would rather find more value because I did close out half of my ETF position, at about 240 or 245, and therefore I think this surge higher most certainly will be followed by people trying to support the market.

But you need a pullback at this point to find any value. Yes, short term momentum players may push this market higher. And yes, temperatures in America have been hotter than expected. But really, at the end of the day, natural gas is a completely abundant resource that is not hard to find. I actually live in an area that is flooded with natural gas.

So I know of what I speak, and therefore I never really trust these moves for anything more than a short term trade. Whether or not we can sustain the upward pressure remains to be seen, but right now I would not bet on it. What I am looking for is a pullback to take advantage of, and I’ll add my ETF position because as you know leverage in this market is very dangerous.

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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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