Natural Gas Price Forecast – Natural Gas Market Continues to Build Pressure

Natural Gas Price Forecast Video for 02.10.23

Natural Gas Technical Analysis

Natural gas markets rallied early during the trading session on Friday, only to see a lot of pushback near the $3.00 level. The $3.00 level has been like a brick wall for quite some time, and I do think that the gate way to much higher pricing is through that level. It’s also probably worth noting that the 200-Day EMA sits in the same neighborhood, and therefore probably attracts quite a bit of attention in and of itself as well. With that being the case, I’m looking at this through the prism of whether or not we can break out.

A longer-term investment is probably the best way to describe what I am doing in this market, as I am actually involved in the ETF market. If you don’t have the ability to trade ETF markets in the United States or another major exchange, you can use the CFD market to tailor your position size, and perhaps more importantly, your risk.

Keep in mind that this is a very cyclical market most years, and I just don’t see why that would be any different right now. When I look at the chart, it’s obvious that there is a major barrier just above, but that barrier eventually gets broken due to the cyclicality of the trade and the fact that there is going to be a lot more demand for natural gas over the next several months. We also have to worry about whether or not the European Union is going to be able to get natural gas without going through the expensive route of doing liquefied natural gas from the United States, which is what most natural gas markets are based upon.

Short-term pullbacks are buying opportunities as far as I can see, and I do think that given enough time, we could go looking toward the $5.00 level, but that is a longer-term call, not something that I expect to see in the short term. A little bit of patience could go a long way in this market as we have been in an accumulation phase for some time.

For a look at all of today’s economic events, check out our economic calendar.