Natural Gas Price Forecast – Natural Gas Markets Bounce From Big Figure

Natural Gas Price Forecast Video for 11.04.23

Natural Gas Technical Analysis

Natural gas markets rallied a bit during the trading session on Monday, as the $2.00 level has offered support yet again. The $2.00 level is a large, round, psychologically significant figure, and of course attracts a lot of attention. At this point, we are getting close to the bottom of the overall range that we tend to be in during the warmer months, so it does make a certain amount of sense that we would bounce here.

At this point, you have to determine whether you were a short-term or long-term trader, because the range typically will be between the $2.00 area in the $3.00 area, a level that we have already tested previously as resistance. The 50-Day EMA is sitting near the $2.68 level and dropping, offering a significant amount of technical pressure. At this point, I think the market is probably oversold and now we could get a little bit of a recovery, but I would not be a huge buyer at this point, because quite frankly, the demand for natural gas is going to continue to drop, as temperatures warm up. Furthermore, we also have to keep in mind that if we are in fact heading into a major global recession, then demand for natural gas will drop as well.

That being said, down the road, we will more likely than not see a bit of a spike, because the European Union still has to figure out what to do about winter. They do not have enough natural gas to get through the winter, so sooner or later we are going to see quite a bit of pressure on the market. That being said, it does not mean that it’s going to be very easy, and therefore I would anticipate a lot of volatility. Nonetheless, natural gas markets are probably easier to trade after a short-term rally that showed signs of exhaustion. At this point, I think it still is going to be a market that you need to be very cautious with, but at the end of the day demand for natural gas is going to be very weak for the next few months.

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