Natural Gas Price Forecast – Natural Gas Markets Slipped Slightly

Natural Gas Price Forecast Video for 27.09.23

Natural Gas Technical Analysis

Natural gas markets have pulled back just a bit during the Tuesday trading session, as we continue to see a lot of noisy behavior. That being said, the market continues to see a lot of noise, but more importantly, it sees a lot of upward momentum just waiting to push this market well above the $3.00 level. The 20-Day EMA sits in the same area, just as the 50-Day EMA does.

The market breaking above the $3.00 level on a daily close could kick off the next leg higher, and it would make a certain amount of sense considering that we have the winter coming, and of course a lot of demand will suddenly pick up. Furthermore, we also have to keep an eye on the European Union, due to the fact that there are a lot of concerns when it comes to the supply for Europe this winter, and we have recently seen the French pull out of West Africa, meaning that the coup d’état is solidifying in Niger, and possibly other countries, greatly influencing what happens next with the trans-African pipeline.

At this point, the market continues to slowly build up pressure, and it looks like we have a larger “rounding bottom” that is in play at the moment as well. If we can break above the 200-Day EMA, then the market could go looking to the $5.00 level. All things being equal, I think this is a scenario that will eventually start picking up, but I have no interest in trying to get heavily invested right away, rather I have been adding to my position as time goes along in an unlevered way.

This way, I can write out the noise that undoubtedly will accompany this market, and therefore enjoy the benefits of cyclical trade which could easily double my money, if I am patient enough. Shorting the natural gas markets is an absolutely impossible task at this point, as this is the wrong time of the year to try to go against the grain. Longer-term investing is what I have been doing, they do anticipate the next couple of months it should pay off quite handsomely.

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