Natural Gas Price Forecast – Natural Gas Markets Quiet on Wednesday

Christopher Lewis
Published: May 24, 2023, 13:40 GMT+00:00

Natural gas markets have been quiet during Wednesday’s trading session as we continue to hang around the 50-Day EMA.

Natural Gas, FX Empire

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Natural Gas Price Forecast Video for 25.05.23

Natural Gas Technical Analysis

Natural gas markets remain lacking as we hang around the 50-Day EMA. All things being equal, this market has been very quiet and listless, as we are in the middle of a major consolidation area, where we have a significant support level near the $2.00 level below and the $3.00 level above. With that being the case, you get a situation where we will eventually have to make a decision, but most of the time, this market will grind back and forth during the summertime as demand will be rather lackluster.

As a general rule, you probably don’t see a lot of natural gas upward momentum until we see a heat wave or perhaps colder temperatures coming into the picture. We are buns away from that being the case, but when we do get to the end of the summertime, we will have to worry about whether or not the Europeans have enough natural gas for the winter. Alternatively, the last year has been very brutal on natural gas supplies for the European Union, as Russia no longer supplies gas to that part of the world. If that’s going to be the case, we will likely see a lot of LNG exports coming out of the United States, which of course will directly influence this market as it is based on the Henry Hub distribution center in the United States.

All things being equal, this is a situation where the market is right in the middle of this consolidation area, so I don’t necessarily think this is a situation where you are going to see a huge move. If we can break out of this $1.00 range, then we can have a bigger move, but right now, I think it’s a lot of back-and-forth movement just waiting to happen, and therefore if you can trade some range-bound system, you might do well for the next several months. However, as we approach the end of the summertime, it is very likely that natural gas will turn into a very bullish market. Ultimately, keep your position size reasonable, and pay close attention to the $2.00 level and of course the $3.00 level.

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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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