Natural Gas Price Forecast – Natural Gas Looking to Rally

Natural Gas Price Forecast Video for 14.09.23

Natural Gas Technical Analysis

Natural gas markets had a very strong trading session on Tuesday, and on Wednesday they will be looking to take advantage of that momentum. After all, we have been consolidating and undulating back and forth for a while now, but there are whole litany of reasons to think that we may go higher in the intermediate term. After all, the European Union will have to find natural gas to heat homes and power businesses this winter, and that means they will more likely than not have to import liquefied natural gas from the United States. Keep in mind that most natural gas contracts that you will be trading are based on the Henry Hub contract, out of Henry, Louisiana. In other words, it’s US natural gas.

The 50-Day EMA sits just below, and does offer a certain amount of support, but I think the real support is closer to the $2.50 level. If we were to break down below there, I think it would be a bit surprising, but even if that were to happen I would only be buying more. This is because not only do we have the issues in Europe this year, but we also have the cyclical trade to begin with. True, there is more natural gas and there once was, but there’s nowhere near enough to fill the whole that is left by Russia did not supplying the EU with gas, and of course the questions asked about the trans-African pipelines in West African now that we have seen several coups d’états break out.

Having said all that, and of course the fact that this type of market is very cyclical, I don’t see any reason why we will break out to the upside given enough time. Once we break above the $3.00 level, it opens up the possibility of a move to the $5.00 level. Having said that, I have been investing in the ETF market, thereby bypassing a lot of the leverage. If you do not have access to the ETF market, scaling into a CFD position makes quite a bit of sense as well.

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