Natural Gas Price Forecast – Natural Gas Continues to Do Very Little

Natural Gas Price Forecast Video for 26.04.23

Natural Gas Technical Analysis

Currently, natural gas markets are trading between $2.00 and $3.00, and traders are closely watching the 50-Day EMA above, which is a trend-defining indicator. If the market breaks above the 50-Day EMA, it could potentially reach the psychologically significant figure of $3.00, where some selling pressure was observed recently. However, it is unlikely that the market will show such a bullish sign anytime soon.

Moreover, natural gas consumption increases in winter, which is not favorable for the market. Additionally, the current state of the global economy has led to a decline in the value and demand for natural gas, as many power plants rely on natural gas for electricity production. With the lack of global growth seemingly being the case, it does make a certain amount of sense that natural gas will struggle. Furthermore, we do not have the concerns in the European Union that we once did. However, there is the possibility that later this year the European Union needs to step into the market and start picking up energy to refill their stocks. In other words, we may have some time to go before the bulls can get excited about the natural gas markets and start putting money to work.

Short-term fluctuations are anticipated as the market tries to determine its course. In general, the market is expected to hover around a $1.00 range throughout spring and summer in the northern hemisphere. If the market falls below $2.00, the short-term support level would be around $1.80, which is likely to be the floor for the next several months.

At the end of the day, natural gas markets are presently trading between $2.00 and $3.00, and traders are monitoring the 50-Day EMA, but it seems unlikely that the market will breach the $3.00 level anytime soon. The spring season is usually not favorable for natural gas, and the global economy’s state has led to a decline in demand and value. The market is expected to be around $1.00 throughout spring and summer, and the short-term support level would be around $1.80 if the market falls below $2.00. However, a break above $3.00 could lead to a massive short squeeze.

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