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

Natural Gas Price Forecast Video for 11.05.23

Natural Gas Technical Analysis

Natural gas markets have done very little during the trading session on Wednesday, as we continue to see more of a sideways grind than anything else. Ultimately, this is a market that I think continues to look at the potential economic slowdown as a major problem, as the demand for industrial electricity will probably drop. Furthermore, we have to worry about the summertime, as the northern hemisphere will not need as much natural gas, with the exception of the occasional heat wave. In other words, we are in a very precarious situation for natural gas, but it’s also worth noting that natural gas has sold off so drastically that there will eventually have to be some type of bounce.

Looking forward, I believe that natural gas will probably attract a lot of attention later this year, as the Europeans will have to replenish their natural gas supplies, and of course Russian gas is no longer a viable option. If that’s going to be the case, then it makes a lot of sense that we continue to see volatility, but eventually we will see some type of spike.

Between now and then, I anticipate that this is a market that will continue to see a lot of noisy behavior, and therefore a lot of sideways behavior between now and then. The 50-Day EMA is sitting just above, and it will almost certainly attract a certain amount of attention. Somewhere around the $2.50 level, I would anticipate seeing a lot of sellers. If we can break above there, then the next obvious resistance barrier should be somewhere in the neighborhood of the $3.00 level, as it is a large, round, psychologically significant figure, and it is also an area where a lot of people will be paying attention to the fact that we recently had a pullback from there after a significant rally.

Between now and then, it is more likely than not going to continue to pay attention to the $2.00 level as a short-term “floor in the market”, the reality is that the support extends all the way down to the $1.80 level, so in general I think there is much more risk to the upside than down, but we just don’t have the momentum necessary to make that move.

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