Natural Gas Price Forecast – Natural Gas Looking to Pull Off a Bottom

Natural Gas Price Forecast Video for 24.08.23

Natural Gas Technical Analysis

The natural gas markets showed little change on Wednesday’s trading, staying steady near the 50-Day EMA. It’s worth noting that this time of year tends to bring a quieter atmosphere to the natural gas sector, reflecting decreased demand for this energy source. Traditionally linked to home heating needs, natural gas also plays a role in electricity generation. All these factors together make for a moment where the decision to view it as an investment or trade calls for careful thought.

In my own approach, I see this as a significant investment, gradually building my non-leveraged position throughout the winter months. On the other hand, I hold the view that this market does hold potential for growth down the line. The key lies in breaking the $3.00 threshold. Once achieved, the market could have its sights on reaching $5.00. Nevertheless, it’s important to recognize that this climb doesn’t necessarily have to happen overnight, and that’s precisely why I’ve chosen to participate through an ETF. This allows me to bypass the day-to-day market ups and downs.

Beneath the surface, a strong support is formed around the $2.50 level. Honestly, as I examine the chart, it becomes clear that there’s a gradual increase each time we approach this point, especially in the ETF domain, which is favored by institutional players. The prevailing sentiment in the markets carries a sense of uncertainty, a feeling that makes sense given the current widespread upheaval. The trajectory of natural gas will be greatly affected by the demand from Europe, a demand that seems hard to fulfill this year. A cold winter might lead to a significant crisis within the European Union.

Until the market definitively takes an upward turn, it’s wise to remain cautious. As a result, I’ve taken a careful approach, slowly increasing my position. However, once we pass the $3.00 barrier, I believe the market will gain momentum, potentially leading to a strong “fear of missing out” (FOMO) trade.

In conclusion, the natural gas markets didn’t see much action on Tuesday’s trading, staying firm around the 50-Day EMA. It’s important to keep in mind that this time of year tends to bring subdued movement in natural gas due to reduced demand. While its primary connection is to heating homes, it also plays a role in electricity. Given these intricacies, the decision between investment and trade demands thoughtful consideration. In my case, I’ve gone for a measured investment strategy, gradually growing my non-leveraged position as winter progresses. The possibility for market expansion exists, hinging on breaking the $3.00 mark and potentially reaching $5.00. Nonetheless, the timeline for such a development is open-ended, prompting my involvement through an ETF to shield myself from daily market fluctuations.

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