Natural Gas Price Forecast – Natural Gas Pulls Back Slightly

Natural Gas Price Forecast Video for 13.07.23

Natural Gas Technical Analysis

Natural gas markets have pulled back just a bit during the trading session on Wednesday, as we continue to consolidate around the same area. The 50-Day EMA sits just below, and is an area of vital interest. After all, the 50-Day EMA is an area where we see a bit of technical interest from time to time, and therefore it makes a certain amount of sense that we would see the market stagnate in this area.

Furthermore, as we are just above the 50-Day EMA and below the 200-Day EMA which is squeezing lower, that typically means that you are about to see volatility. Keep in mind that the natural gas market is typically a market that is seasonally weak at this point in the year, so the fact that we are still below $3 should not be a huge surprise. Having said that, this summer may be quite a bit different than many others.

All things being equal, this is a market that I think is going to continue to see buyers jump into the market as we have to worry about the European supply, as the market continues to see and lack of supply being a real issue with Russian gas offline. Because of this, the Europeans will be buying liquefied natural gas from the Americans, which of course gets much more expensive. In that situation, we have an area that looks as if it could be a bit of a launching pad, but we might be a bit back-and-forth in the short term. Ultimately, the market has plenty of support not only at the 50-Day EMA, but also the $2.00 level as well. All things being equal, I think we’ve got a situation where the market is going to be one that you will have to be very patient with, but eventually we should see a breakout.

When I look at this market, I think of it more or less as an investment and not so much as a short-term trade. Because of this, either using small CFD positions or an ETF trade might be the way to go forward. Using leverage might be a bit difficult at this point, because you will have to have quite a bit of time to wait.

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