Natural Gas Price Forecast – Natural Gas Markets Continue to Look Toward Support

Natural Gas Price Forecast Video for 23.03.23

Natural Gas Technical Analysis

Natural gas markets have fallen a bit during the trading session on Wednesday, as it looks like we are trying to threaten the $2.00 level. That being said, we are also seeing that there had been buyers jumping into the market just above that area, especially during the previous session. That being said, we could be trying to form some type of double bottom, which would make a certain amount of sense with a large, round, psychologically significant number.

That’s not to say that natural gas is suddenly going to be a bullish market, just that it’s very possible that we could bounce toward the $3.00 level, which seems to be the top of the overall consolidation area, and where we see the 50-Day EMA hanging about. Any rally from this point in time will have to be looked at through the prism of being countertrend, and therefore it’s likely that plenty of sellers will be willing to take advantage of the first signs of exhaustion.

From a fundamental standpoint, it’s worth noting that the natural gas market is typically weak this time of year anyway, as the northern hemisphere starts to heat up. Demand drops with the rising temperatures for heating, which is a huge component of natural gas demand. Furthermore, you have to pay attention to the industrial demand, which of course is greatly influenced by a global slowdown. Natural gas is used to produce electricity but is also used to produce a lot of other things beyond retail, as industrial demand is a huge component of energy as well. If the world economy is starting to slow down, then it makes quite a bit of sense that natural gas demand will slow down.

It’s also worth noting that the Europeans managed to skirt around the idea of a very cold winter, as they had enough natural gas stored after the Russian invasion of Ukraine to keep the market somewhat stable and in fact was one of the main reasons that we sold off so drastically. Beyond that, the Americans are willing and able to support the European Union with LNG exports as well. This means that even if we do rally from here, we are not going to see a move towards $10 like we did last year. Rallies are not to be trusted.

For a look at all of today’s economic events, check out our economic calendar.