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Natural Gas Price Forecast – Natural Gas Markets Pull Back

By:
Christopher Lewis
Published: Oct 2, 2023, 12:52 GMT+00:00

Natural gas markets have pulled back a bit during the Monday session, as we continue to see the same overall grind.

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In this article:

Natural Gas Price Forecast Video for 03.10.23

Natural Gas Technical Analysis

Natural gas markets have pulled back just a bit during the trading session on Monday, as we continue to see a lot of noise around the $3.00 level. The $3.00 level is a large, round, psychologically significant figure that has offered massive resistance all summer long. That being said, it certainly looks as if we will eventually have to sort something out as to whether or not we can break out. Quite frankly, I think natural gas eventually will, and once it does, we will go looking to the 200-Day EMA. If we break above that level, then it opens up a move all the way to the $5.00 level. Because of this, the market is going to have a lot of FOMO if we get toward that region.

That doesn’t mean that it happens right away, and it doesn’t mean that it happens very easily. After all, natural gas markets do tend to move on short-term weather patterns but there are some longer-term things coming into the picture this year. For example, this is a market that has to deal with the idea that the Europeans are going to struggle finding enough natural gas this year as Russia is offline to the EU, and of course the situation in West Africa will offer some problems for the Europeans as well, as natural gas coming out of Africa will be cut off to some extent or the other.

The 50-Day EMA underneath should continue to offer support, so if we were to break down below there, then we could see quite a bit of negativity down to the $2.50 level, which is an area that has a lot of support. Anything below there would of course be a very negative sign for the market, and at that point in time it would be possible for the market to drop all the way down to the $2.00 level. While I don’t see that happening easily, the reality is that I do think it’s probably only a matter of time before these pullbacks get smashed, and we turn around and go to the upside, if for no other reason than the cyclical aspect of this market.

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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