Natural Gas Price Forecast – Natural Gas Markets Continue to Climb Toward 50-Day EMA

Natural Gas Price Forecast Video for 08.06.23

Natural Gas Technical Analysis

Natural gas markets have rallied just a bit during the trading session on Wednesday, as it looks like we are trying to get back to the 50-Day EMA above, but ultimately I think this is a situation where you have a lot of noisy behavior. Ultimately, think this is a situation where the $2.00 level underneath offers plenty of support, while the $3.00 level above offers resistance. With this being said, I think you do have a nice range bound trading opportunity for a majority of the summer, which does make sense considering that there will be a serious lack of demand for natural gas as heating for the northern hemisphere is no longer an issue.

Another thing that will be working against the value of natural gas is the fact that the global economy is slowing down. That obviously is very negative for energy in general, but there are some potential tailwinds on the horizon. For example, the reality is that the Europeans will have to replace their storage of natural gas for fall and winter, as the Russian gas supply is not an option. With that, I suspect that we could have another volatile and positive fall and winter season for natural gas, but between now and then I think you have to play this more or less through a range-bound type of strategy. Because of this, you also have to focus on shorter-term charts, and recognize that sometimes you will have to be very nimble with your trades, and get in and out as quickly as possible at times.

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