Natural Gas Price Forecast – Natural Gas Markets Kick Off the Week on the Quiet Side

Natural Gas Price Forecast Video for 25.04.23

Natural Gas Technical Analysis

Natural gas markets have done almost nothing during the trading session on Monday, as we continue to go back and forth in a very short-term environment. Ultimately, the 50-Day EMA above is worth paying close attention to, as it is a largely followed trend-defining indicator. That being said, if we were to break above there, then we could go looking to the $3.00 level above, which is obviously a large, round, psychologically significant figure, and an area where we recently had seen some selling pressure. Breaking above that would obviously be a very bullish sign, but at this point, it seems a bit of a stretch to think that’s going to happen anytime soon.

We are currently at the beginning of the worst time of year for natural gas, which obviously is used for a lot of heating. Furthermore, we have to worry about the global economy failing at this point, which drives down the value and the demand for natural gas, as a lot of electricity is produced via natural gas plants.

All things being equal, the market is trading between the $2.00 level on the bottom and the $3.00 level on the top, and that does make quite a bit of sense that we would see the market trying to figure out whether or not that’s going to be the “summer range.” All things being equal, it should be in the $1.00 range, which is quite common for this market throughout spring and summer in the northern hemisphere.

This is not to say that we cannot break down below the $2.00 level, but if we do I think the $1.80 level is your short-term support level, and therefore I think this is a situation where that would probably be your floor throughout the next several months. I would anticipate short-term back-and-forth action, as the market tries to figure out what to do with itself. Ultimately, I do think that the market rallies and breaks above the $3.00 level, but that would probably be a situation for later this summer as people start to look toward the fall.

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