Natural Gas Price Forecast – Natural Gas Markets Bounce to Kickoff the Week

Natural Gas Price Forecast Video for 08.08.23

Natural Gas Technical Analysis

Natural gas markets have rallied a bit during the trading session on Monday, as it looks like we are continuing to try to get to the upside, and the $3.00 level above is a target. If we can break above the level, then it’s likely that the market could go looking to the 200-Day EMA after that. If we can break above the 200-Day EMA, then it’s likely that we could go looking toward the $5.00 level above. Obviously, that is a market that is going to be a difficult place to get to, but I do think that eventually we get there for a multitude of reasons.

Ultimately, this is a market that has to pay close attention to the idea of the demand picking up later in the year, especially considering that the Europeans will have to replace Russian gas that they won’t be getting again this year. While the Norwegians have stepped in to pick up the slack a bit, they are nowhere near producing what Russia can. Because of this, Europeans will look toward the United States for Liquefied Natural Gas. In other words, it’s going to drive the price of this contract higher.

If we do fall from here, then it’s likely that we will see the $2.00 level underneath continue to be a bit of a “floor in the market”, as we have seen multiple times in the past. All things being equal, the market is likely to continue to see a lot of volatility, but I think there are plenty of people willing to step in and pick up value as it occurs. You have to keep in mind that the futures market is very volatile and it can be very expensive, so the route that I have taken has been to buy the commodity through the ETF markets. CFD trading can also come into play here as well, because you can keep your position size reasonable while you wait for the market move to the upside. In general, this is a situation where we continue to see a lot of upward pressure eventually, but it may take some time to get there.

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