Natural Gas Price Forecast – Natural Gas Market Picks Up Momentum

Natural Gas Price Forecast Video for 17.05.23

Natural Gas Technical Analysis

Natural gas markets have rallied a bit during the trading session on Tuesday to reach the 50-Day EMA. This indicator is quite often followed by technical traders in the natural gas markets, as it is a highly technical market at times. Keep in mind that we are in the midst of summer, so therefore one would have to assume that there is a certain amount of lackadaisical range bound trading ahead, with the $2.00 level underneath offering a certain amount of support, perhaps even being the short-term floor in the market for the summer. However, keep in mind that there is a thick “support zone” extending all the way down to the $1.80 level.

The natural gas markets will continue to be somewhat stuck in a range this time a year typically, but it is probably worth noting that the market has sold off so drastically that it makes sense that we would have to have a little bit of recovery. If we can break above the 50-Day EMA, then it’s possible that the market will reach all the way to the $3.00 level above, which is a large, round, psychologically significant figure, and an area where we have seen somewhat significant resistance previously.

At the end of the summer, at least for the northern hemisphere, I suspect that there will be a lot of buying pressure as traders try to get ahead of the demand coming out of the European Union. Keep in mind that the markets will continue to be very noisy, and therefore could be erratic, but eventually Europeans will be buying liquid natural gas from the Americans again, driving this contract higher.

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