Natural Gas Price Forecast – Natural Gas Markets Continue to Drift Lower

Natural Gas Price Forecast Video for 28.04.23

Natural Gas Technical Analysis

The natural gas markets have drifted slightly lower during the Thursday trading session, as we continue to reach to the $2.00 level. Ultimately, this is a market that is going to continue to struggle with the idea of demand, especially as we are heading into warmer months. The northern hemisphere is by far the biggest area of demand, and if the market is going to continue to be influenced by a lack of cold weather, then obviously the prices will drop. Typically, this time of year we get a little bit of negativity and a range in general. I think we are setting up between the $2.00 level on the bottom and the $3.00 level on the top.

The 50-Day EMA sits just above at the $2.55 area, and is dropping, so I think it does make a certain amount of sense that we could see technical resistance in that area. Even if we break above there, I think that $3.00 level continues to offer a lot of psychological resistance, in an area where we have seen a lot of selling pressure previously. Ultimately, this is a scenario where the market continues to see a lot of back-and-forth and I think you have more or less a “fade the rally” type of situation. It’s very difficult to get overly bullish of natural gas anytime soon, although we could eventually see some type of spike due to a heat wave.

One major problem with natural gas at the moment is the fact that the global demand is going to drop from an industrial standpoint as well, as it looks like we are heading into a global recession, and therefore it’s likely that we continue to see dollar pressure as well. I have no interest in buying natural gas anytime soon, but I also could make an argument that later this year the Europeans will have to refill their tanks, and that could be a huge driver of natural gas to go higher. However, we are probably a couple months away from that, and therefore I’m not overly pressed and continue to fade rallies as they occur.

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