Natural Gas Price Forecast – Potential Opportunity Shows Itself in Seasonal Weakness

Natural Gas Price Forecast Video for 14.07.23

Natural Gas Technical Analysis

The natural gas market experienced a slight pullback during Wednesday’s trading session, maintaining consolidation within a familiar range. This article examines the current dynamics of the market, including the significance of the 50-Day Exponential Moving Average and the potential impact of European supply concerns. Investors seeking long-term opportunities in natural gas should consider certain factors to navigate this period of seasonal weakness.

The 50-Day EMA holds considerable technical relevance in the natural gas market and often influences price action. Its proximity to the descending 200-Day EMA suggests a potential period of volatility ahead. While natural gas typically exhibits weakness during this time of year, remaining below the $3 threshold, the summer season may deviate from historical patterns. Investors should pay attention to these technical indicators as they navigate the market’s movements.

The scarcity of Russian gas supply has led to a notable shift in the European market, with increased demand for liquefied natural gas (LNG) from the United States. This shift, despite the higher cost, creates an environment that could potentially drive natural gas prices upward. As a result, buyers are expected to enter the market. It is important to note, however, that short-term price action may exhibit some back-and-forth movement before a clear direction emerges.

The natural gas market is currently in a consolidation phase, with solid support levels at the 50-Day EMA and the $2.00 mark. Considering the potential need for patience during this period of uncertainty, investors may find it more suitable to approach natural gas as a long-term investment rather than a short-term trade. Utilizing smaller CFD positions or engaging in ETF trades can provide flexibility and mitigate risks. Leveraging positions may be challenging, as waiting for breakout opportunities is crucial.

While the natural gas market maintains a range-bound pattern during this period of seasonal weakness, unique factors such as European supply concerns and increased demand for US LNG may disrupt the historical trend. Investors should approach natural gas as a long-term investment, considering smaller positions and exercising patience to capitalize on potential breakout opportunities. That being said, you need to understand that the natural gas market is for investors, not necessarily short-term trades.

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