Natural Gas Price Forecast – Natural Gas Markets Gap Lower

Natural Gas Price Forecast Video for 31.10.23

Natural Gas Technical Analysis

Natural gas markets have gapped lower to kick off the trading week, as we continue to see a lot of noisy behavior. The 200-Day EMA underneath continues to offer a lot of support, and therefore, it would not be surprising at all to see a bit of buying in this general vicinity. Remember, this is the time of the year when natural gas typically takes off, due to colder weather. If we turn around and show signs of strength, we could break out above the top of the shooting star from the previous trading session, which obviously would be very bullish, perhaps opening up to the $4.00 level.

If we turn around and break down below the 200-Day EMA, then it’s possible that we could see the 50-Day EMA underneath, which is a technical indicator that a lot of people would have a lot of interest in, which could also be significant support. All things being equal, the market is likely to continue to see a lot of volatility, which is typical for this market anyway. Regardless, natural gas is going to have to pay close attention to the Middle East, and new events such as Egypt no longer having access to natural gas coming from Israel. Furthermore, we have the European Union likely to struggle to find enough natural gas this winter, and therefore it’s likely that we could see a lot of upward momentum. Regardless, this time of year is simply not the time I like to sell natural gas.

We recently have seen market participants give up a little bit of momentum, but ultimately, we have been consolidating, perhaps trying to build up enough momentum to take off to the upside. The $5.00 level is the longer-term target as far as I can see, and quite frankly, it would not surprise me at all to get there. However, if we were to break down below the 50-Day EMA, then it could change some things, but right now I just don’t see it having enough momentum to turn things around for a longer-term selling opportunity. As things stand right now, this is a situation where I look at short-term pullbacks as an opportunity to pick up “cheap gas.”

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