Natural Gas Price Forecast – Natural Gas Markets Gap to Kick Off the Week

Natural Gas Price Forecast Video for 29.08.23

Natural Gas Technical Analysis

Natural gas markets have gapped higher to kick off the trading session on Monday, as it looks like we are going to continue to try to get to the $3 level. All things being equal, the market then opens up the possibility of breaking much higher than that if we finally clear that psychological barrier. After all, if we break above the $3.00 level, it’s very likely that we will see a lot of short covering as people will bailout of negative positions. At that point, I think that the natural gas markets will really start to take off to the upside.

The 200-Day EMA is closer to the $3.33 level, and it would be the next target. After that, then the market would probably go looking toward the $5.00 level over the long-term, and it would not surprise me at all to see that happen this year. After all, the natural gas situation in the European Union is much worse than it once was, and now we have the coup d’état in Niger threatening France with the natural gas pipeline being shut off, but France’s particular issue is going to be the lack of uranium coming out of Niger. The entire EU may find itself scrambling for natural gas again this winter, as the Norwegians have tried to step up, but can’t necessarily replace Africa or Russia.

In general, this is a market that is cyclical in nature anyway, so I think a lot of this is already written in the plans. The ETF market has been seeing more and more volume pick up over the last couple of weeks, so this suggests that once Wall Street comes back from the summer break, it’s likely that we could continue to see more volume go into this market to the upside. As things stand right now, I am a buyer of all dips, but using low leverage because part of the issue here is going to be waiting for the market to finally take off. All things being equal, I have no scenario in which I’m a seller, and I am building up a position for this fall.

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