Natural Gas Weekly Price Forecast – Natural Gas Markets Struggle With 50-Week EMA

Natural Gas Price Forecast Video for 16.10.23

Natural Gas Weekly Technical Analysis

Natural gas markets have broken to the upside and even pierced above the 50-Week EMA. That being said, we have turned around to show signs of exhaustion, and therefore it’s possible that the market could pull back just a bit in order to find buyers. The $3.00 level underneath should offer a significant amount of support, therefore I think a lot of value hunting will be a factor in this market.

The European Union has to deal with a lack of natural gas supplies this winter as temperatures plunged, therefore I think you have a situation where it’s only a matter of time before we see natural gas go higher. I have been using non-levered positions, meaning that I have been using the ETF market, instead of jumping into the futures market which can be very negative and erratic to your financial health and account if you don’t have the right position sizing. Unfortunately, they are not flexible enough, so this is why I use low levered or even non-levered positions.

I believe this is a longer-term trade that takes several months to play out, so the day-to-day nerves don’t worry me so much, as we have just now broken out of a rounding bottom that I think continues to be of importance. If we pull back, I’ll add more to the position as I’m waiting for it to finally take off from its basing pattern and take advantage of its yearly cycle due to a peak in demand over the next couple of months. It’s worth noting that we are already trading the November futures contract, so that comes into play as well.

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