Natural Gas Price Forecast – Natural Gas Markets Continue to Hover

Natural Gas Price Forecast Video for 24.04.23

Natural Gas Technical Analysis

Natural gas markets have rolled over into a new contract, so therefore we are starting to price in the month of June. The question is whether or not we are going to see demand pick up anytime soon or not. It’s very unlikely that we will, as the natural gas markets continue to see a lot of questions asked about overall demand, and although there might be the occasional heat spike in the northern hemisphere, quite frankly the concerns about the global economy slowing down will probably outweigh that.

There is a bullish case to be made in the longer term though, as the European Union will have to replenish its stocks that it went through over the winter. Furthermore, you also have to keep in mind that it is still a situation where the United States is going to have to provide quite a bit of natural gas to the European Union, which directly influences this price. However, we are more likely than not a month or 2 away from any attempt to start buying natural gas by the Europeans, so as things stand right now, we are more likely than not going to be trying to settle into a summer range.

As things stand right now, it looks like the $2.00 level underneath is going to be the bottom of the range, while the $3.00 level above will be the top of the range. It’s probably worth noting that the 50-Day EMA sits just above, so I do think there is a certain amount of influence coming from that indicator as well. Summertime trading in the natural gas market does tend to be very choppy and sideways, and therefore I think you have to look at this through the prism of a range and perhaps even use some type of oscillator to make your trading decisions when markets get overbought or oversold. If we were to break above the $3.00 level, that might be the beginning of the Europeans refilling their tanks, but there is no sign of that at the moment. Ultimately, I think we continue to see a lot of lackluster chop over the next several weeks.

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