Natural Gas Weekly Price Forecast – Natural Gas Markets Continue to Fall
Natural Gas Price Forecast Video for 05.06.23
Natural Gas Weekly Technical Analysis
Natural gas markets fell significantly during the course of the trading week, as it looks like we are trying to get back down to the $2.00 level, which of course is a large, round, psychologically significant figure, and an area where we have bounced from previously. Natural gas does tend to form a bit of a summer range, and I think that’s what we are testing right now. While it is still technically a very bearish market, I think most of the selling is probably exhausted. That doesn’t necessarily mean that we turn around right away, but I think at this point the market will continue to go between $2.00 on the bottom and $3.00 level on the top.
Even if we were to break down below the $2.00 level, I still see support at the $1.80 level as well. On the upside, if we were to break above the $3.00 level, I think it would be temporary due to some type of spike in heat. After all, this time a year is typically poor for natural gas, but if we get some type of heat wave in the United States, that can drive up demand. From an industrial standpoint, natural gas is going to continue to struggle, as the global economy looks to be slowing down.
Because of this, I think rallies are somewhat limited in the meantime, but eventually we will see this market take off to the upside as traders started to focus on European demand, as the Russians are no longer providing gas to the European Union, and the Norwegians cannot make up the entire difference. Eventually, the Europeans will come looking for LNG from the United States.
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