Natural Gas Price Forecast – Natural Gas Markets Consolidate Again

Natural Gas Price Forecast Video for 29.06.23

Natural Gas Technical Analysis

While the market remains below this level, it is consolidating within the summer range, reflecting indecision among traders. Ongoing concerns about European natural gas demand for the upcoming seasons add to the market’s sentiment.

The $3.00 level has consistently posed a significant resistance area, maintaining its impact on the natural gas market. As a result, the market finds itself in a state of indecision, with participants seeking opportunities for a potential breakout. It is important to note the Europeans’ efforts to replenish natural gas stocks before the fall and winter seasons, as this factor contributes to ongoing market concerns. While these developments may still be in their early stages, the summer months have witnessed significant base building.

The 50-Day Exponential Moving Average is a potential support level beneath the current price range. If the market reaches this area, it could reverse its downward trend and display signs of upward movement. On the contrary, a breakdown below the 50-Day EMA could bring the $2.00 level into play as a major support level. Traders and investors will closely monitor these levels to assess the market’s future direction.

Taking a broader perspective, natural gas presents an excellent investment opportunity for the year’s second half. With the eventual rise in European demand, market dynamics are expected to be driven significantly by this factor. As summer progresses, short-term price surges may occur due to sporadic heat waves or temperature spikes in the northern hemisphere. However, it is important to acknowledge that such movements will likely take time to arrive. From a longer-term standpoint, natural gas has the potential to reach $5.

Tuesday’s trading session in the natural gas market highlighted the ongoing consolidation phase and the significance of the $3.00 resistance level. As European demand for natural gas continues to be a major consideration, investors should monitor suitable entry points for long-term positions in this market, as it could be a big winner later this year. However, in the short-term, you should be aware of the potential volatility and the potential headwinds due to the season we are in.

For a look at all of today’s economic events, check out our economic calendar.