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

Natural Gas Price Forecast Video for 20.07.23

Natural Gas Technical Analysis

Natural gas markets have pulled back just a little bit during the trading session on Wednesday, as we are hanging around the 50-Day EMA. All things being equal, this is a market that I think continues to see a lot of noise, and therefore it is a situation where the market is trying to build up enough momentum to finally take off to the upside.

Natural gas markets will get a boost from the fact that the Russians are not going to be supplying the Europeans, and as long as the war in Ukraine continues, there will be a huge hole in global supply. The Europeans will be coming to America for liquefied natural gas, and by extension that will drive this market higher. Above, I see the $3.00 level as being a major barrier to overcome, and if we can break above there, that would open up the possibility of a move toward the 200-Day EMA.

On the other hand, if we were to turn around break down below the lows of the last couple of days, we could see natural gas to reach toward the $2.25 level, and then possibly the $2.00 level. All things being equal, this is a market that has plenty of institutional interest, although most large institutions are buying into the UNG ETF, and other non-levered entities. After all, futures markets can be extraordinarily volatile so you have the possibility of perhaps buying in the CFD market in smaller bits and pieces in order to go higher.

Ultimately, if the market were to continue to see a lot of noisy volatility, I think the best way to look at this market is through the prism of an investment, and I have been adding little bits and pieces here and there a time we pull back. Once we break above that $3.00 level, it’s likely that we see a huge FOMO trade come into the picture. I have no interest in shorting natural gas, although I do fully recognize that this time of year tends to be range bound and there could be sellers from time to time over the next several weeks.

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