Natural Gas Price Forecast – Natural Gas Markets Continue to Consolidate

Natural Gas Price Forecast Video for 05.07.23

Natural Gas Technical Analysis

Natural gas markets rallied slightly during the trading session on Tuesday in what would have been limited and thin trading. After all, it was Independence Day in the United States; therefore, it makes quite a bit of sense we would see a little bit of noisy behavior. The 50-Day EMA underneath could offer a dynamic support, showing itself as important recently. It’s also worth noting that a lot of the larger traders are starting to build up bigger positions in order to take advantage of what should be a bigger move later.

All things being equal, it looks as if the Europeans will struggle this winter trying to fill their natural gas storage, therefore it should drive prices back up. After all, Russia is no longer a supplier of natural gas for the Europeans, and therefore they will have to come looking for liquefied natural gas in the United States. Because of this, it’s very likely that the natural gas contract will continue to go higher but in the meantime it looks like we are trying to consolidate between the $2.00 level underneath and the $3.00 level above. With that being the case, it is more likely than not going to be a situation where we have a lot of noisy behavior, but given enough time it looks like we are trying to break out to the upside. If we can break above the $3.00 level, then it’s possible that we could go running toward the 200-Day EMA.

Underneath, the $2.00 level has been a very hard floor in the market, and should continue to be so. If the market were to break down below there, then it’s possible that we could see a move down to the $1.80 level, but so far we have not seen that actually come to fruition. I think we have probably seen the low in the market, but at this point in time I am looking to buy dips going forward. Ultimately, the market should continue to see the buyers come in and try to take advantage of value, and therefore longer term traders will certainly be attracted to natural gas over the next several months, waiting for the major breakout.

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