Natural Gas Price Forecast – Natural Gas Markets Stabilize

Natural Gas Price Forecast Video for 14.08.23

Natural Gas Technical Analysis

Natural gas markets have stabilized a bit during the trading session on Friday, as it looks like we are trying to recover from the massive selloff on Thursday. That being said, I still believe that the overall attitude of the natural gas market remains a “buy on the dips” strategy just waiting to happen, as the market has to pay close attention to the idea of natural gas being somewhat scarce later this year in the European Union.

While Russian natural gas being off the market is somewhat of a given, the question now is where will the European Union get its natural gas for the winter. The Norwegians have tried to step in, and they of course can do a certain amount, but what people will be paying close attention to is the trans-African pipeline, which runs through Niger, which of course is in the midst of a coup d’état. The junta has stated that they want the Western influence out of the country, therefore questions arise as to whether or not the natural gas line will be able to supply the European Union with that natural gas.

Furthermore, you also have this time of the year which is typically slow for natural gas, as the demand for heating drops off of a cliff. If we get the occasional spike in temperatures in North America, that could cause a little bit of upward pressure, but ultimately the real move will be based on perceived shortages this winter. It is very likely that once we take out the $3.00 level, natural gas will start to take off to the upside, perhaps going as high as $5.00, after breaking through the 200-Day EMA. I have no interest in selling this market, because quite frankly there has been a proven amount of support underneath. The 50-Day EMA currently suggests support, but really at this point in time I just don’t have any reason to think that the market is one that you can sell, and quite frankly the more we drop, the more likely I am to start buying based upon the idea of it being value.

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