Natural Gas Price Forecast – Natural Gas Markets Stagnate After Push Higher During the Previous Session

Natural Gas Price Forecast Video for 09.08.23

Natural Gas Technical Analysis

Natural gas markets have drifted a little bit lower during the trading session on Tuesday, after seeing a massive shot higher on Monday. That being said there are some other geopolitical issues out there that could continue to drive natural gas higher, which have just popped into the view of the market.

After the coup d’état in Niger, it has become increasingly obvious that the provisional government has no interest in the trans-African natural gas line passing through its country. This is a big deal because it is the pipeline that is expected to be a replacement for the Nordstream II natural gas pipeline that “someone” blew up earlier this year. In other words, it was expected to replace Russian gas for the European Union in the next couple of years. If Niger chooses not to allow this to happen, it gets rid of yet another source of potential cheap natural gas for the European Union. Adding more trouble to the equation, Niger is a major exporter of uranium, which is another way for Europeans to get power.

At this point, it’ll be interesting to see how this plays out but I do think that regardless of what happens next, eventually we see the cyclical trade come into vogue, sending natural gas above the $3.00 level. However, I think we go much higher than that but you also have to treat this as an investment, not necessarily a short-term trade. The 50-Day EMA underneath offers support, which is an area where a lot of people will be paying close attention to, as it is a widely followed technical indicator anyway.

That being said, you should keep in mind that it is somewhat flat so that suggests that the market does not have any real driving trend at the moment, but the fact that we aren’t going any lower suggests that we may have already hit bottom. Regardless, short-term dips should continue to be a buying opportunity, and I do think that eventually cold weather will drive this market higher. I am not levered at the moment, rather I have chosen to buy ETF positions, which keeps me in the trade without worrying about the massive losses that a futures contract can bring. If you do not have the ability to buy an ETF position, a small CFD position can accomplish the same thing.

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