Natural Gas Price Forecast – Natural Gas Markets Bounced Slightly Heading Into the Weekend

Natural Gas Price Forecast Video for 03.07.23

Natural Gas Technical Analysis

Natural gas markets have bounced slightly during the trading session on Friday, as the 50-Day EMA underneath continues to offer support. All things being equal, I believe this is a market that will eventually go looking to reach the $3.00 level, which is an area where we would see a lot of resistance. If we can break above there, then the market could go to the 200-Day EMA, closer to the $3.65 level.

Keep in mind that natural gas has been consolidating for quite some time, and I do think that we are in the midst of some type of bottoming pattern. I still like the idea of buying short-term dips, as it offers value in a market that I think has a lot of momentum ahead of it, due to the fact that the Europeans will have to replenish natural gas supplies, due to the fact that the Russians are no longer supplying gas. As we head toward the fall, the European Union will have to reach out to the Americans and buy liquefied natural gas.

Because of this, there should be a certain amount of support built into this market. With that, any dip at this point in time should be a buying opportunity, especially with the $2.00 level underneath being supported. I think that is the “hard floor in the market” this year, and it would not surprise me at all to see this market double between now and November.

All of that being said, natural gas is more of an investment and not so much a trade, so I would prefer to trade the UNG ETF, or something equivalent that takes a lot of the leverage out of the equation, because it is going to be very noisy. Even if I were to trade futures or some type of levered CFD, I would look for dips in order to find a bit of value. I have no interest in selling natural gas anymore, because not only have we been building a basing pattern, but volume in some of the ETF markets has been increasing quite drastically, which is a classic accumulation phase.

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