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Natural Gas Price Forecast – Natural Gas Markets Have Fallen Again

By:
Christopher Lewis
Published: Jun 9, 2023, 15:22 GMT+00:00

Natural gas markets have drafted slightly lower during the Friday trading session as we continue to see the 50-Day EMA.

Natural Gas, FX Empire

In this article:

Natural Gas Price Forecast Video for 12.06.23

Natural Gas Technical Analysis

Natural gas markets have drifted slightly lower during the Friday trading session, as we continue to see the summer range in effect. Ultimately, the market is looking at the $2.00 level underneath as a potential support level, with the 50-Day EMA offering some resistance. Above there, we have the $3.00 level offering significant resistance, and that will likely play out as the top of the recent consolidation range. Remember that the summer is typically a quiet time for the natural gas markets, as demand in the northern hemisphere for heating will completely disappear.

The market will generally continue to be very noisy, on short-term charts. If we see a massive heat wave, that could cause a bit of a spike, but those will be short-lived. The market breaking above the $3.00 level would be a very bullish sign, but I think it would be somewhat short-lived during the summer. That being said, the market will likely continue to see a lot of short-term back-and-forth behavior, but eventually, we will see that the Russian natural gas supply is not available for the European Union to show strength in this market.

After all, the Europeans will have to replenish the supply, and therefore it does make a certain amount of sense that we would see upward pressure later this year. Quite frankly, I think this will be one of the better trades to the upside by the time we hit winter, but as things stand right now, I think we are stuck in a very tight range. If you are a short-term trader, then you can use some type of range bound trading system to take advantage of micro movements.

I would not put a lot of money into this market, but if you’re patient enough you can withdraw on a regular basis profits that give you a bit of a base to help your returns between now and the end of the year. Eventually, we will see this market take off and perhaps try to reach as high as $5 this year. If the market were to break down below the $2.00 level, then it’s possible that we could drop down to the $1.80 level, as there is a bit of a “support range” in that area.

For a look at all of today’s economic events, check out our economic calendar.

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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