Natural Gas Price Forecast – Natural Gas Markets Bounce

Natural Gas Price Forecast Video for 11.07.23

Natural Gas Technical Analysis

Natural gas markets have rallied just a bit during the trading session on Monday, as we continue to look at the 50-Day EMA as a potential support level. When you look at the natural gas markets, you can see that it appears that we are doing everything we can to try to bounce to go higher. After all, the market is almost certainly looking forward to the idea that the Russian gas that won’t be available in the European Union this winter is going to be a major issue.

This will drive up demand for liquefied natural gas coming out of the United States, which of course the natural gas contract is highly sensitive to as it is based on distribution from Henry, Louisiana. The $3.00 level above is the next major barrier, and if we can get there, then I think it’s possible that we have an opportunity to break out. Whether or not we break out in the short term remains to be seen, but I do think that there is a certain amount of position building at this point that is driving this market. It’s worth noting that the ETF market is most certainly showing a significant amount of volume accumulation, and therefore it’s very likely that bigger traders are starting to bet on the idea of natural gas rising later this year.

That being said, it’s worth noting that the market is still very much range bound, so you can’t get overly excited at this point. However, if we were to break above the $3.00 level, then it’s almost certain that we will go looking to reach the 200-Day EMA, which is presently near the $3.60 level. If we do pull back from here, I would anticipate seeing a lot of support underneath, and therefore think it’s probably only a matter of time before buyers jump back in. The $2.00 level has been very important several times in the past, and of course is a large, round, psychologically significant figure that a lot of people will be paying attention to. Buying on the dips and waiting for the potential breakout down the road makes the most amount of sense.

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