Natural Gas Price Forecast – Natural Gas Markets Continue to Consolidate

Christopher Lewis
Published: Mar 20, 2023, 14:10 UTC

The natural gas markets have done very little during the trading session on Monday, as we continue to trade in the same range.

Gas tanks, FX Empire

In this article:

Natural Gas Price Forecast Video for 21.03.23

Natural Gas Technical Analysis

This is a market that had sold off so drastically that it should not be a huge surprise that there is no need or momentum to push this market to the upside. The market has been stuck between the $3.00 level above, and the $2.00 level below. The 50-Day EMA is racing toward the $3.00 level as potential resistance, so I think it’s only a matter of time before the sellers would come back into the market. This is not to say that we cannot get above there, just that it is more likely than not will cause a bit of hesitation.

If we break above the 50-Day EMA, then the market could go looking to the $4.00 level. The $4.00 level obviously is a large, round, psychologically significant figure, and therefore I think it would attract a certain amount of attention. On the downside, the $2.00 level is rather important as well, as it is a large, round, psychologically significant figure as well.

At this point, we are getting ready to see warmer temperatures in the United States and Europe, that of course drives down a lot of demand. Furthermore, we may see a major concern out there as to whether or not industrial demand will fall, as traders will start to see the idea of industry slowing down as a major drag on pricing as well.

That being said, it is probably only a matter of time before we see an attempt to rally, perhaps due to a longer-term value proposition. With this being the case, later this year I expect to see a big move, but right now I think it’s going to be dead money in this tight range.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?