Natural Gas Price Forecast – Natural Gas Markets Continue to Consolidate

Natural Gas Price Forecast Video for 23.08.23

Natural Gas Technical Analysis

Natural gas markets have done very little during the trading session on Tuesday, as we continue to hang around the 50-Day EMA. Keep in mind that the natural gas market is typically somewhat soft this time of year, as demand for natural gas wanes. After all, typically natural gas moves on the idea of heating homes, although electricity production comes into the picture as well. All things being equal, this is a situation where you have to look at this through the prism of whether or not you want to treat it as an investment or trade.

For myself, I am using this as a significant investment, adding to a non leveraged position over the course of the winter. Alternatively, this is a market that I do think it will take off eventually, and once we break over the $3.00 level, then the market could go looking to the $5.00 level. That doesn’t necessarily mean that it has to happen right away, and that’s why I am personally using an ETF to get involved, that way I don’t have to worry about the fluctuations of the day-to-day market.

Underneath, there is a significant amount of support near the $2.50 level, but quite frankly as I look at this chart, it does look like there is more inflow every time we dip, especially when you look at the ETF market, which is a favorite of institutions. The overall attitude of markets continues to be one of confusion, and that does make a certain amount of sense because we do have a massive amount of noise out there. Natural gas will be driven by the demand coming out of Europe, which quite frankly cannot be satiated very easily this year. It’s possible that the European Union has a serious crisis if winter is cold.

Until the market truly takes out to the upside, it does pay to be very cautious and I have been adding very slowly to my position. However, once we get that break above the $3.00 level, I do think that a lot of momentum will enter the market, perhaps opening up the possibility of a huge “FOMO trade.”

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