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Natural Gas Price Forecast – Natural Gas Markets Drift Lower Into the Weekend

By:
Christopher Lewis
Published: May 26, 2023, 14:33 GMT+00:00

Natural gas markets have drifted slightly during the Friday trading session, as the market has shown a proclivity to head back toward the $2.00 level.

Natural Gas, FX Empire

In this article:

Natural Gas Price Forecast Video for 29.05.23

Natural Gas Technical Analysis

Natural gas markets have seen a little bit of negativity during the trading session on Friday, as demand for natural gas from an industrial standpoint continues to be a concern. Ultimately, I think this is a situation where we are still stuck in the summer range, but that being the case is very difficult to get overly excited one way or the other. It’s obvious to me that the $2.00 level underneath it is a significant support level. On the other hand, the $3.00 level above is significant resistance, and I think that will probably end up being the overall consolidation range that we are stuck in.

Furthermore, we are hanging around the 50-Day EMA, which of course is an indicator that a lot of people pay close attention to. With this being the case, it does make sense that we have a little bit of noisy behavior. However, this is a situation where you have to be very cautious, but as you get to the outer range of the consolidation area, you can start to employ some type of range bound system to take advantage of what has been so obvious for a while. With this, I think we get a situation where it could be very profitable for range bound traders for the rest of the summer. That being said, once we do get to the end of the summer, it’s likely that we will have demand coming out of the European Union and therefore we probably will have to be more of a “buy-and-hold” market at that general vicinity. Ultimately, expect a lot of back and forth over the next couple of months.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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