Natural Gas Price Forecast – Natural Gas Markets Have Strong Monday

Natural Gas Price Forecast Video for 18.04.23

Natural Gas Technical Analysis

Natural gas markets have gapped higher to kick off the trading session on Monday, looking much like a market that is trying to find the top of a range. There are a couple of candidates above that could be the top of that range, so we need to pay attention to multiple places.

While I am not bullish on natural gas at all right now, I do recognize that eventually “bottom pickers” come back into the market in order to try and lift natural gas markets. The 50-Day EMA is worth paying attention to which is just below the $2.60 level, and then of course you have the psychologically significant $3.00 level, and it’s also an area that we have seen selling pressure at previously, and therefore I think it does make a certain amount of sense that we try to work out this range, possibly between the $2.00 level in the $3.00 level. For what it is worth, that is pretty close to the typical range during the summer months in the northern hemisphere, when demand is typically much lower than it is during winter.

Ultimately, you should also pay close attention to the fact that we will eventually have to see the Europeans refill their tanks, as they go into the winter. That’s not anytime soon now, probably a few months down the road. I think this is a situation where we are trying to figure out what the overall “basing pattern” for the next move to the upside. Ultimately, I think eventually we will break above the $3.00 level and make a much bigger move, but I suspect that is probably going to be closer to the September contract. In the short term, you may have a nice opportunity to get long, but just for a short-term trade. At the first signs of exhaustion after rally, I’m more than willing to start selling this market again, as natural gas is abundant, and it is not manipulated by a cartel like OPEC does in the crude oil market. Signs of exhaustion after a short term rally are much more easy traits to take in my opinion.

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