Natural Gas Price Forecast – Natural Gas Markets Threaten Major Breakout

Natural Gas Price Forecast Video for 11.08.23

Natural Gas Technical Analysis

Natural Gas markets continue to look very bullish, although we have ended up forming a little bit of a negative mood for the day, the reality is that we have shot straight up in the air, as we are threatening the $3.00 level. If we can break above the $3.00 level, then the market could go looking to the 200-Day EMA. The 200-Day EMA of course is a very crucial indicator that a lot of technical traders will pay attention to, so if we were to break above there, then we could go much higher, perhaps to a target of $5.00 level.

The recent coup d’état in Niger throws into question whether or not the trans-African pipeline can be used to supply the European Union with natural gas this winter. Between that and of course the Russian gas that is no longer available, this causes major problems for supply disruptions. All things being equal, this is a market that we will have to be very cautious about trying to sell despite the fact that this time of the year is somewhat soft for natural gas. However, the war in Ukraine seems like it’s going nowhere, so at the end of the day, we could see a huge problem with supply for the Europeans, and therefore we could see a potential situation like we had last winter, although it might even be worse.

The Europeans got lucky last year as the winter was relatively mild, but if it was to be colder than in the previous year, this could cause major issues. With that being said, there is a lot of risk of some type of melt up. I have been long natural gas for several weeks, but with no leverage. I have been trading the ETF market myself, but you can also use the CFD market to keep your leverage low until we get the breakout. Ultimately, this is a market that I think continues to see a lot of volatility to the upside, but short-term pullbacks could occur, only to offer value that a lot of people will pay close attention to. I have no interest whatsoever in shorting.

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