Natural Gas Price Forecast – Natural Gas Continues To Sit at the 50-Day EMA

Natural Gas Price Forecast Video for 18.07.23

Natural Gas Technical Analysis

On Monday, natural gas markets experienced a slight rally, with prices hovering around the 50-Day Exponential Moving Average, a crucial indicator closely watched by traders. This stabilization reflects ongoing efforts to establish a potential bottoming pattern in the long term, considering the fundamental factors influencing the market. In this article, we will explore the current state of the natural gas market, particularly in the context of the European Union’s supply challenges and the potential impact of liquefied natural gas from the United States.

Recovering natural gas supply has become a challenge for the European Union, especially since Russia is no longer directly providing affordable natural gas. Interestingly, current price levels bear resemblance to a time when Russia supplied natural gas to the EU without complications. Currently, Europeans are acquiring natural gas from China and India, who, in turn, obtain it from Russia. This indirect approach allows for bypassing of sanctions while creating an appearance of strength.

The ultimate solution for the European Union lies in procuring liquefied natural gas from the United States. This shift is expected to drive natural gas contract prices higher. Market pricing is based on sales from Henry, Louisiana. While the market may witness back-and-forth movements in the near term, there is a belief that natural gas prices may eventually break above the $3.00 level, signaling the market’s readiness for a significant upward move. During this time of the year, natural gas typically remains within a summer range, oscillating between the $3.00 resistance level and the $2.00 support level. Historical patterns suggest that a few months from now, a substantial upward trajectory may emerge, making the current market an enticing opportunity for long-term investment, with potential short-term trading opportunities during price dips.

The natural gas market exhibited a minor rally, stabilizing near the 50-Day EMA, indicating ongoing efforts to establish a potential bottoming pattern in the long term. Recovering natural gas supply within the European Union remains a challenge, with Russia’s direct supply no longer available. However, the procurement of liquefied natural gas from the United States is seen as the ultimate solution, potentially driving prices higher. Traders should expect back-and-forth movements in the market, while keeping a close eye on a potential break above the $3.00 level, which would signify significant upward momentum. Given the typical seasonal range of natural gas during the summer, the current price levels between $3.00 and $2.00 are within expectations.

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