Natural Gas Price Forecast – Natural Gas Continues to Wander

Christopher Lewis
Published: Jun 25, 2024, 13:10 GMT+00:00

Natural gas markets continue to wander around aimlessly, as we continue to drift lower in general. Ultimately, the heatwave in the United States going away will have a major influence on this market.

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Natural Gas Technical Analysis

Natural gas markets have essentially done very little during the early hours on Tuesday, and we continue to wait and try to sort out whether or not we are bullish or if we are going to go back down to historical norms for this time of year. The heat wave in the United States is abating, so that does help the idea of lower prices going forward.

I suspect if you are patient enough, you should get a nice buying opportunity in this market, as it should drop towards the $2.50 level without too much effort. It’s probably worth noting that on the four hour chart, the last couple of swing highs have been lower. So I think we are getting there. I don’t necessarily know that we will collapse as far as price is concerned, but I am looking to get involved at lower levels on top of a position I already have. I have an ETF position that’s from somewhere around $2.10.

So, although I’ve taken half of the profit, I’m perfectly fine adding to this market later, because sooner or later we get the fall push higher when demand starts to pick up for natural gas again. Above, we have the $3 level, which I think is going to offer a major resistance barrier, so it’ll be interesting to see how that plays out. If we were to break above there, that could change a lot of things.

But right now, I’m not necessarily looking for that to happen. I do think that given enough time, we will have to challenge that. But that might be more of a fall thing. That being said, you never know. Anything can happen. So, position science accordingly. That’s why I’m in an ETF. This is an extraordinarily volatile market and therefore I don’t have to worry about the day to day nonsense quite so much.

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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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