Natural Gas Price Forecast – Natural Gas Markets Pull Back in Signs of Exhaustion

Natural Gas Price Forecast Video for 12.10.23

Natural Gas Technical Analysis

Natural gas markets have pulled back just a bit during the trading session on Wednesday, as we are well above the 200-Day EMA, but may have gotten a little bit ahead of ourselves. For myself, I will be looking to buy this market on a dip, as I have been building a position for months. The $3.00 level underneath should end up being a significant support level, and I do think that it is probably only a matter of time before buyers would come in due to “market memory”, or perhaps even the fact that there was structural noise in that region. The 50-Day EMA is also in that neighborhood and rising, so it does suggest that perhaps there is going to be a certain amount of support underneath there. Pullbacks at this point in time look attractive to me though, so I do look at this as an opportunity.

To the upside, if we can break above the highs of the last couple of days, then it opens up the natural gas markets for a move to the $4.00 level, possibly even the possibility of a move to the $5.00 level, which I do think we eventually had sometime later this year. After all, we have colder temperatures coming, and that brings in the cyclical trade that we get every year. Colder temperatures of course will bring up demand, but this year we have the added bonus of not having a clear route for natural gas to get to the European Union, which is going to be in an absolute mess this year.

Because of this, the US contract, which is essentially what almost all CFD brokers focus on, will be very bullish, and we will see natural gas rally as a result. Futures markets are obviously US-based as well, so with the Europeans having to import Liquefied Natural Gas from the USA, it makes sense that we only go higher over the longer term. That being said, we have a bit of an overbought condition, so we are simply waiting for value to continue going into this market and buying.

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