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Natural Gas Price Forecast – Natural Gas Markets Continue to Drift Toward $2

By:
Christopher Lewis
Published: Jun 1, 2023, 14:49 GMT+00:00

The natural gas markets have fallen slightly during the trading session on Thursday, as we continue to drop a bit yet again.

Natural Gas, FX Empire

In this article:

Natural Gas Price Forecast Video for 02.06.23

Natural Gas Technical Analysis

Natural gas markets have fallen slightly during the trading session on Thursday, as we continue to drift toward the $2.00 level. All things being equal, this is a market that I think will eventually touch that level, which is the bottom of what I think is a range for the summer. Whether or not we can break down below the $2.00 level remains to be seen, as it is so important. Ultimately, this is a market that I think will continue to be very noisy, and I do believe that people will fade short-term rallies as they occur. Quite frankly, there’s no real reason to think that things are going to change anytime soon, especially as the demand for natural gas is going to take a bit of a hit due to the fact that the industrial demand is going to fall.

As we head into a recession, this of course will be bad for energy consumption, but you should also keep in mind that natural gas is also a market that focuses on heating more than anything else, and obviously that isn’t going to be in huge demand in the northern hemisphere for the next few months. Typically, during the month we go back and forth and I think that’s essentially what we are seeing here. Even if we were to break down below the $2.00 level, there should be support all the way down to the $1.80 level. It’s not until we break down below the $1.80 level that I think things change drastically.

Until then, I think we got a situation where we just simply bounce back and forth. Range bound trading opportunities should continue to be the norm, therefore if you have a range bound system, this is your market.

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.

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