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Natural Gas Weekly Price Forecast – Natural Gas Markets Continue to Consolidate

By:
Christopher Lewis
Updated: Jun 9, 2023, 16:27 GMT+00:00

Natural gas markets have consolidated during the week, as we continue to see a lot of noisy behavior in general.

Natural Gas, FX Empire

In this article:

Natural Gas Price Forecast Video for 12.06.23

Natural Gas Weekly Technical Analysis

Natural gas markets have had a slightly positive week, as we continue to bounce around in the same consolidation region that we have been in for the last several weeks. The market does tend to be very range-bound during the summertime, so it looks as if the $2.00 level underneath could be significant support, right along with the $3.00 level above as resistance. Ultimately, this is a market that will continue to see a lot of noisy behavior due to the fact that we are trying to figure out whether or not we are going to continue to see a lack of demand due to the slowing down of the overall global economy. After all, industrial demand is something that a lot of people need to pay close attention to.

Heating of course is not a major issue as well due to the fact that the northern hemisphere is now entering summer. The occasional heat wave might cause a spike in pricing, but that’s almost always a short-term phenomenon. Because of this, I think we need to pay close attention to how this market behaves and fade signs of over exuberance.

On the other hand, later this summer I would anticipate that people start to try to build a larger position for this winter, when the Europeans will be buying liquefied natural gas from the Americans, that will almost certainly put upward pressure on this market. Between now and then, I think we just have a lot of back-and-forth and we probably have to look at it from a shorter-term perspective, therefore offering a bit of volatility that people will pay close attention to, but as far as longer-term trades are concerned, we probably have some time to go before we get one.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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