Natural Gas Price Forecast – Natural Gas Markets Consolidate Around 200-Day EMA

Natural Gas Price Forecast Video for 16.10.23

Natural Gas Technical Analysis

Natural gas markets have been doing very little during the course of the week, after breaking above the 200-Day EMA last week. This is a indicator that a lot of people will be paying attention to, therefore it does make a certain amount of sense that we would see a bit of support. Ultimately, the market is likely to continue to see a lot of back-and-forth trading, and therefore I think you have to also look at this through the prism of accumulation. All things being equal, the $3.00 level underneath continues to be an area of significant importance, as it is a large, round, psychologically significant figure.

Furthermore, we have the 50-Day EMA coming into the picture to offer support out the $3.00 level, so I think given enough time, we will see buyers come into this market and I am a buyer of dips as natural gas continues to have plenty of tailwinds behind it. Because of this, I think you’ve got a situation where we will eventually go higher, and therefore I think we continue to have more or less a “buy on the dips” attitude. If we were to break down below the 50-Day EMA, it would be a bit surprising, but I think given enough time, we should go looking to the $4.00 level, possibly even the $5.00 level.

Keep in mind that the European Union will have to try to find natural gas during the winter, as they have lost a lot of their supply. With that being the case, the market is going to continue to see a lot of headlines come into the picture about gas lines that are broken, and of course we have recently seen the pipeline between Estonia and Finland broken. In other words, somebody is specifically damaging the supply into the EU, as both that and the Nordstream II have been ruled as sabotage. Because of this, and the fact that the temperatures are getting colder anyway, it should be very bullish for natural gas and therefore I have been investing to the upside, and have no interest in shorting. Anytime we pull back, it gives value.

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