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Natural Gas Weekly Price Forecast – Natural Gas Markets Drift Lower for the Week

By:
Christopher Lewis
Published: Mar 24, 2023, 16:06 UTC

Natural gas markets have shown a bit of hesitation during the week, as it looks like we are continuing to dance around the same overall region.

Natural Gas, FX Empire

In this article:

Natural Gas Price Forecast Video for 27.03.23

Natural Gas Weekly Technical Analysis

Natural gas markets have drifted a little bit lower during the trading week to reach down toward the $2.25 level, but at this point in time the market is so sold off that one has to wonder whether or not the sellers have any momentum. At this juncture, I think this is a situation where we may be getting ready to form some type of basing pattern, so it’s more or less going to be a range bound market from what I can tell. With that, I look at the $2.00 level underneath as massive support, just as I see the $3.00 level above as significant resistance.

However, it is probably worth noting that the market has to deal with the fact that warmer temperatures are coming for the northern hemisphere, and of course this will drive down heating demand. After that, then you have to worry about whether or not the industrial demand will pick up, because quite frankly, there are a lot of concerns for the global markets. The attitude of the markets will continue to be one of hesitation, but it does look as if the natural gas markets are entering a very calm sideways trend.

If we do break above the $3.00 level, I anticipate that it is probably only a matter of time before short sellers would come in and start working at the downside. The 200-Week EMA sits just above the $4.00 level, so that is something worth paying attention to as well. Regardless, I don’t have any interest in shorting this market from a longer-term standpoint, due to the fact that the market has made such a huge move to the downside previously. That being said, if we do rally a bit, that could give us a little bit of runway for that trade.

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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