Natural Gas Price Forecast – Natural Gas Markets Quiet on Wednesday

Natural Gas Price Forecast Video for 13.04.23

Natural Gas Technical Analysis

Natural gas markets have done very little during the trading session on Wednesday, as we continue to see a lot of noisy behavior. Ultimately, it looks as if we are trying to find a floor near the $2.00 level, but whether or not we can find that at any time soon remains to be seen. After all, there are a lot of economic issues out there that traders will have to figure into any type of analysis. Keep in mind that natural gas is very sensitive to the overall economic situation than the world is going through and that a lot of concerns will be out there about whether or not there is going to be industrial demand. Remember that the time of year is also historically weak as there are a lot of warm parts of the world that will need heating. However, if we start to see industrial demand fall off of a cliff as there is a lack of global growth, that could of course be very negative.

Natural gas typically will trade between $2.00 at the bottom and $3.00 at the top of the overall range for the warm months in the northern hemisphere, and that looks like what we are settling into at the moment. Another thing that we need to pay close attention to is the fact that the market has a lack of catalysts, such as we had last year when the Russians crossed over into the Ukrainian East. That being said, eventually the Europeans will have to refill their natural gas stocks, and that will put upward pressure on this market.

That happens toward the end of the summer though, so at this point I still look at this as a “fade the rally” market still, and I think that the 50-Day EMA just above at the $2.65 level could offer a significant amount of resistance. Above there, then the $3.00 level has already shown itself to be important enough to be resistance previously. With this being the case, I think we’ve got a situation where the market will continue to be noisy, but ultimately, I think that we eventually get a bear market bounce that we can start shorting.

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