Natural Gas Price Forecast – Natural Gas Markets Stabilize

Natural Gas Price Forecast Video for 04.08.23

Natural Gas Technical Analysis

Natural gas markets have stabilized a little bit during the trading session on Thursday, as we are hanging around the crucial $2.50 level. Because of this, it looks like the market is more likely than not going to be in a situation where buyers are coming in to pick up a little bit of value, and it’s probably worth noting that although natural gas has been a bit choppy and sideways, it is in a seasonally quiet time of year.

We’ve recently seen some concerns about a cooler than anticipated August in the United States causing a bit of a slowdown in demand, but really at this point in time you think you get a situation where the market is also going to be paying close attention to the Europeans and what they are going to do with their natural gas situation this winter. After all, the Norwegians have made up a little bit of that natural gas that would normally come from Russia, but they are still going to be on the hook for quite a bit more, and therefore will have to look for liquefied natural gas coming out of the United States.

If we can turn around and recover the 50-Day EMA, then I think it’s possible that the natural gas markets go looking toward the $3.00 level above. That being said, if we can break above that level, then it’s very likely that we continue to go much higher, as it will enter the “moment trade” that a lot of people are paying close attention to from a cyclical standpoint. Underneath, it’s very likely that the $2.00 level offers significant support, and is essentially the “floor” in the market. With that being the case, we get a situation where dips continue to be bought into, but whether or not we break out in the short term remains to be seen. I think this is a simple value play and probably more of an investment than a trade. Given enough time, this is a market that will not only break above the $3.00 level, but it will threaten the 200-Day EMA as well.

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