Natural Gas Price Forecast – Natural Gas Markets Continue to Drift Towards $2.00

Natural Gas Price Forecast Video for 30.03.23

Natural Gas Technical Analysis

Natural gas markets have lost ground yet again during the trading session on Wednesday, as it looks like we seemingly are never going to find some type of buying pressure. This is obviously false, but it certainly looks as if the market is going to be a situation where it’s going to take quite some time to find its footing. As things stand right now, it’s almost impossible to imagine a scenario where I would be a buyer of natural gas, as it is down 79% from the peak. In other words, if people bought at the top and didn’t get out, they are destitute.

The 50-Day EMA sits just below the $3.00 level, and I think that is essentially going to be the ceiling in the market. The one thing about natural gas that most people are taking into account is that it can be used as a signal for other markets. After all, this is a situation where we’ve seen the market triumph over natural gas, because of course the Americans are now able to supply the European Union with natural gas. But perhaps more importantly it’s the fact that there will be a lack of demand for natural gas.

Temperatures are going to go higher in the northern hemisphere over the next couple of months, so that wipes out the idea of natural gas being used to heat homes. Furthermore, and perhaps more importantly, there is going to be a lack of industrial demand for natural gas as the global economy is almost certainly slowing down. In fact, you can use natural gas as one of the barometers to tell where the economy is going. Others being of course the copper market, and the crude oil market.

Even if we were to break above the $3.00 level, then the $4.00 level would be the next area I would be watching. Regardless, what I would really like to see is some type of rally that I can sell with a long way to the upside. However, it just does not look like the market can get off the floor, so I suspect we may be trying to head into some type of accumulation phase through the next several months.

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