Natural Gas Price Forecast – Natural Gas Market Stall

Natural Gas Price Forecast Video for 21.06.23

Natural Gas Technical Analysis

Natural gas markets remained a bit sluggish and quiet during the day. Ultimately, this is a market that, given enough time, will break out of the range that we are in, but that might be something to mention in the realm of summertime trading. After all, this market is cyclically very quiet during the summertime, as heating demand drops through the floor. Yes, we will get the occasional heat wave that can cause a short-term spike, but ultimately, this is a situation where we will continue to see selling into those rallies.

However, the reality is that later this summer, the Europeans will have to start refilling their natural gas storage, as the recent shuttering of the Groningen gas fields will put even more pressure on the EU supply. That being said, there are some issues about industrial demand as well, so that does keep this market sluggish, as natural gas is a major input for electricity.

The 50-Day EMA sits underneath and is relatively flat. This suggests that the market is going to continue to go sideways overall, and with the $2.00 level underneath offering significant support, and the $3.00 level offering significant resistance, we are hanging around the middle, just kind of dancing around. Ultimately, the importation of liquefied natural gas by the Europeans will have a major influence on the market, due to the fact that the Norwegians cannot produce enough gas to fuel the European Union, and even though Qatar is trying to help, the reality is that they will have to come to the Americans for more energy.

With that being said, every time this market gets close to the $2 level, I’m willing to buy a little bit and take advantage of any bounce to collect profit. At that point in time, it will more or less end up being a “rinse and repeat” type of situation. After all, the market had sold off so viciously from the highest that a lot of the “FOMO trading” is gone. Because of this, I think you have to look at this through the prism of short-term trading, but with an eye on the longer-term upward momentum.

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