Natural Gas Price Forecast – Natural Gas Markets Rally to Kick Off the Week

Natural Gas Price Forecast Video for 06.06.23

Natural Gas Technical Analysis

Natural gas markets have rallied a bit during the trading session on Monday, as it looks like we are trying to support the bottom of the overall range. Ultimately, the $2.00 level underneath is an area that has been a major bottom a couple of times, and therefore it’s likely that we have seen the bottom of the overall summer range that the market tends to fall into, and therefore I think the market will continue to see a lot of support.

Looking at this chart, the 50-Day EMA sits just above and near the $2.45 level, offering a small resistant barrier. If we can break above there, then the market could go all the way to the $3.00 level, which of course is a significant big figure that a lot of people will be paying attention to, and has offered resistance already. Breaking above that level then opens up the possibility of a bigger move, perhaps all the way to the 200-Day EMA, but it seems very unlikely to happen in this environment. After all, summer tends to be very quiet in the natural gas markets, but that won’t necessarily be the same this year as the end of the summer might end up being a situation where traders have to start focusing on Europe and whether or not they are going to have to refill their natural gas storage.

After all, Russia is not going to be offering natural gas this winter, and therefore after surviving last winter, one would have to think that the European Union will have to come together and buy more liquefied natural gas from the Americans. Later this summer, I fully anticipate that this market will take off to the upside, but between now and then, I anticipate a lot of sideways and noisy action more than anything else. Even if we were to break down below the $2.00 level, the downside is limited at this point.

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