Natural Gas Price Forecast – Natural Gas Markets Continue to Build a Base

Natural Gas Price Forecast Video for 22.08.23

Natural Gas Technical Analysis

Natural gas markets have rallied a bit during the trading session on Monday, breaking above the 50-Day EMA, and I do think that we continue to go much higher, perhaps reaching toward the $3.00 level over the longer term. The market is likely to continue to see a lot of buyers jump in and pick up natural gas now that we are seeing a bit of a heat wave hit the United States, but we have longer term reasons to think that natural gas will go higher as well.

In general, you should pay close attention to the fact that the natural gas markets are highly influenced by not only whether in the United States, but the fact that the European Union also has a major issue on its hands helps the market over the longer term due to the fact that the Russian natural gas is off-line and is going to stay that way. After all, the war in Ukraine is nowhere near being done.

The Norwegians have tried to fill the gap a bit, but adding more complexity to the situation is a coup d’état in Niger, which threatens the trans African pipeline that a lot of people have looked toward for a potential solution for the European Union. With that being said, the most likely outcome is going to be the Europeans will be buying liquefied natural gas from the Americans, which will directly influence this market.

I have no interest in shorting, and I do recognize that there is a cyclical trade here anyway, due to the fact that the demand for heating will come into the picture. If we break above the $3.00 level, then it is likely that we could go looking to the $5.00 level, which is my longer-term target through the course of winter as the northern hemisphere will need more natural gas in order to heat homes and power factories, etc. At this point, I am still building a base with a non-levered position, because now it is simply a waiting game.

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