Natural Gas Price Forecast – Natural Gas Markets Continue to Sit at 50-Day EMA

Natural Gas Price Forecast Video for 19.05.23

Natural Gas Technical Analysis

The natural gas market witnessed a notable rally during Thursday’s trading session as prices surged to the 50-Day Exponential Moving Average (EMA). Technical traders closely monitor this indicator in the natural gas market due to its highly technical nature and significance. As we step into the summer season, it is anticipated that the market will display range-bound trading with a certain degree of sluggishness. Market analysts predict that the $2.00 level will serve as a crucial support level and potentially act as a short-term floor for the market throughout the summer. Moreover, a substantial “support zone” extends down to the $1.80 level.

Historically, the natural gas market tends to be confined within a range during this time of year. However, it’s important to acknowledge that the market has experienced significant selling pressure, which opens the possibility for a potential recovery. Should the market break above the 50-Day EMA, prices could soar to the $3.00 level. This price level carries considerable significance as a large, round, psychologically important figure and has previously acted as a notable resistance level.

Towards the latter part of the summer, particularly in the northern hemisphere, there is an expectation of increased buying pressure as traders anticipate rising demand from the European Union. Despite the potential for market noise and erratic movements, Europeans will likely resume purchasing liquid natural gas from the United States, thereby driving up prices in this market.

In summary, the natural gas market is presently experiencing a rally, reaching the significant 50-Day EMA. As the summer progresses, the market is anticipated to engage in range-bound trading, with the $2.00 level serving as a support level and a potential short-term floor. Additionally, a broader “support zone” exists, extending down to the $1.80 level. A break above the 50-Day EMA could propel prices toward the $3.00 level, which has previously acted as a significant resistance. Increased buying pressure is expected later in the summer, driven by the resumption of European purchases of liquid natural gas from the United States. Despite potential market noise and volatility, this demand from the European Union is likely to drive the market higher.

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