Natural Gas Price Forecast – Natural Gas Markets Continue to Recover

Natural Gas Price Forecast Video for 26.10.23

Natural Gas Technical Analysis

Natural gas markets have rallied a bit during the early hours on Wednesday, as we continue to see a bit of a recovery in what has been a nice correction as of late. All things being equal, the 200-Day EMA seems to be offering a certain amount of support, and therefore I think we are going to go looking toward the recent high that the market made. Ultimately, this is a scenario where the natural gas demand will be picking up over the next couple of months, so it does make a certain amount of sense that we would see prices rally.

If we do break down below the 200-Day EMA, we still have the 50-Day EMA offering support, and therefore it’s worth noting that the market has been very cognizant of that indicator as well. In other words, I do think that there are plenty of technical support levels underneath that come into the picture. Regardless, I think it’s probably going to be a bit choppy but I think it’s probably only a matter of time before we go higher, especially as demand picks up in places like Europe and the United States. Recently, we have seen a little bit of a short-term heat wave in America, which gave the market an excuse to pull back. However, we are starting to see temperatures in the future drop again, so it is only a matter of time before we go higher.

This is a situation where the European Union is going to be hurting for supply, due to the fact that the Russian supply of natural gas is no longer a thing for the Europeans, and of course we have recently seen a couple of pipelines destroyed as well, so where the Europeans are going to get natural gas is a main focus, meaning that the US contract, which is exactly what most natural gas CFD markets and obviously futures markets follow, will continue to see a lot of demand come into the picture as liquefied natural gas will end up being the solution. Because of this, I expect natural gas to have a very strong winter.

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