Natural Gas Price Forecast – Nat Gas Continues to Build a Base for Fall

Natural Gas Price Forecast Video for 28.08.23

Natural Gas Technical Analysis

The coming months are set to bring interesting changes in the natural gas markets. We often see prices rise during colder months as demand for heating homes goes up – it’s a cycle that’s well-known. This trend is especially noticeable in the northeastern United States and the European Union when winters get tough. However, this year adds some extra layers of complexity, especially for the EU. The worry is about having enough natural gas available. Russian supply is on hold, and the Groningen field in Europe is being shut down by policymakers, which is causing uncertainty. This uncertainty makes us wonder about the EU’s future access to natural gas, and it strongly suggests that prices will keep going up for a while.

But remember, the market has its own rhythm. So, it’s important to be cautious if you’re expecting prices to change direction completely. Reversals tend to take longer than we think. I’m taking a patient approach here. While I do expect big gains down the road, it’s smart to be careful and not use too much leverage. Markets don’t always follow predictions, and that’s why waiting and watching makes sense. Personally, I invest through ETFs. If you don’t have that option, you might consider smaller Contract for Difference (CFD) positions. Just remember, there’s no need to put everything into a single position. Being patient can really pay off in this complicated market.

It’s reasonable to think that prices might eventually go above $3.00, but we can’t be sure when that will happen. Right now, there’s no clear reason for this kind of movement. So, we’re not quite ready for that shift just yet.

In conclusion, the next few months will bring important changes in the natural gas markets. The pattern of higher demand during colder months is something we know well. But this time, there are extra worries about supply in the EU, and that’s pushing prices up. Still, the market doesn’t always move the way we expect, so it’s important to be careful and patient. While we’re hopeful for bigger gains, it’s wise to manage risk. Letting the market unfold on its own timeline is a good strategy, and it might lead to positive results over time.

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