Natural Gas Price Forecast – Natural Gas Continues to Sit In The Same Area

Natural Gas Price Forecast Video for 17.04.23

Natural Gas Technical Analysis

Natural gas markets have done almost nothing during the trading session on Friday, as we continue to hang about the $2.00 level. This is obviously an area where a lot of people will be paying attention, as it is a large, round, psychologically significant figure. All things being said and done; this is a market that is trying to find its “summer range.” Typically, during this time of year, this is a relatively quiet market, unless there is some type of heat wave. It’s not uncommon to see natural gas trade between $2.00 and $3.00 during the warmer months, so I think this fits in quite nicely with the idea of a “normal summer.”

One other thing that you need to keep in mind is that the industrial demand for natural gas is going to be very soft if we do in fact head into a major recession like a lot of people are expecting. In that scenario, I think you’ve got a good chance of the market even breaking down below the $2.00 level, but it’s worth noting that the $1.80 level underneath is also an area where we’ve seen support in the past. Regardless, this is not a market like buying at the moment, for anything other than a short-term trade.

Once we do settle into a range, then it becomes a simple matter of going back and forth until the market breaks out. The 50-Day EMA is at the $2.59 level, an area that we have seen act as a bit of a consolidation point previously. Because of this, I think we will at least try to get there, but it may take a while to make that happen. In fact, over the last couple of weeks we’ve been in the $0.25 range, which makes for basically a scalping environment more than anything else. As far as making any real money on a trade, it’s probably going to be difficult but you should keep in mind that by the end of summer, the Europeans will have to refill storage tanks full of natural gas, and that could cause a major spike in the future, something that would most certainly be worth being involved in.

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