Natural Gas Price Forecast – Natural Gas Markets Trying to Perk Up

Natural Gas Price Forecast Video for 06.04.23

Natural Gas Technical Analysis

Natural gas markets have rallied just a bit during the trading session on Wednesday, as the $2.00 level continues to be psychologically and structurally important. In fact, it looks as if the market is trying to find some type of consolidation range to work from, with the $2.00 level underneath being the floor, and the $3.00 level above being the ceiling. With this, we also have the 50-Day EMA sitting at the $2.73 level and dropping from here. This of course will offer a certain amount of dynamic resistance, so if we do rally from here, signs of exhaustion will be jumped on near that moving average, as well as the $3.00 level.

If we were to turn down and break down below the $2.00 level, and therefore show even more weakness, then it’s likely that we go down to the $1.80 level. That being said, the market continues to see a little bit of stubborn behavior right around the $2.00 level, and it is most certainly oversold. I think what we are more likely than not going to see over the next couple of months will be more or less sideways action. The $1.00 range is what I believe is going to be the overall attitude of the market as we bounce between these 2 levels. Remember, demand will go lower during warmer months, as there will be less of a need for heating. Furthermore, you also have to worry about a slowing economy in the United States, which of course will drive down demand for natural gas-producing electricity.

This is not to say that the market cannot rise, but I am of the belief that any time we do get a bit of a rally in this market, you need to start looking for signs of exhaustion to sell. Trying to pick the bottom here is going to be a very difficult task indeed, and quite frankly, the risk to reward just is not there yet. That being said, we are settling in to arrange for both spring and summer, which is quite typical in this market. Ultimately, a little bit of patience could go a long way in this market.

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