Natural Gas Price Forecast – Natural Gas Markets Hang Around the 50-Day EMA

Natural Gas Price Forecast Video for 24.05.23

Natural Gas Technical Analysis

Natural gas markets have shown themselves to be rather noisy, as we continue to hang around the 50-Day EMA. That being said, the market is likely to see a lot of choppy behavior in this general vicinity, as we are in a generally range-bound time of year for natural gas. I do not like the idea of putting a ton of money into this market, but I am more than willing to continue playing the overall summer range. The $3 level above is a significant barrier, while the $2 level underneath is a significant support region.

As we are sitting right in the middle of this range, there’s probably not a whole lot to do, although if I were forced to take some type of position, it would almost certainly be a position on the short side as demand for natural gas will continue to be very weak this time a year. After all, the weather in the United States and Europe will be warm, so the heating demand is almost nonexistent. However, if we get the occasional heat wave, that could drive prices higher.

The real bullish attitude that natural gas is probably going to be at the end of summer when we have Europeans trying to come back into the picture and refill natural gas storage tanks heading into the winter. Remember, they can’t import natural gas from Russia anymore, and although Norway has picked up some of the slack, it’s not enough to make up the shortfall. Because of this, I think later this year natural gas will be a great buy-and-hold position, but it’s not quite time for that yet.

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