Natural Gas Price Forecast – Natural Gas Markets Bounced Slightly to Kick Off Tuesday Session

Natural Gas Price Forecast Video for 19.07.23

Natural Gas Technical Analysis

Natural gas markets have rallied slightly during the trading session on Tuesday, as the 50-Day EMA continues to offer a significant amount of support. By doing so, it looks as if the market is going to try to get to the $3.00 level above, an area that has been important multiple times. Furthermore, the $3.00 level is a large, round, psychologically significant figure, so it does make a certain amount of sense that we would see difficult resistance to break above in that area. If we were to break above that level, then it opens up the possibility of moving to the 200-Day EMA, which is about another $0.50 higher.

If we pull back from here, then it is likely that we could go down to the $2.00 level, but that of course is major support, as we have seen a bit of a range forming for the entirety of the summer. After all, summer typically is a very seasonally weak time of year for natural gas, but we also have to keep in mind that the Europeans will have to replenish the natural gas supplies as the Russian gas will not be online this year again. All things being equal, the Norwegians cannot make up the difference, so it does make a lot of sense that we will see European suppliers continue to pick up liquefied natural gas from the United States, thereby driving this contract higher.

That being said, the breakout might be something that happens much later, and therefore you have to be patient. I am treating this more or less like a longer-term investment as we are forming a large “rounding bottom. However, if we were to break above the $3.00 level, I think a lot of money would come into the market trying to chase the potential move. The market breaking above the 200-Day EMA would confirm that we could go much higher, perhaps as high as $5.00 above, which is a large, round, psychologically significant figure. In general, I expect to see a lot of noisy behavior, but more of an upward trajectory than anything else.

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