Natural Gas Price Forecast – Natural Gas Market Pullback

Natural Gas Price Forecast Video for 13.10.23

Natural Gas Technical Analysis

Natural gas markets pulled back a bit during the trading session on Thursday, as it looks like we are starting to reach down toward the 200-Day EMA. Alternatively, this is a market that looks very likely to continue finding buyers, this pullback should have plenty of market memory just underneath it to keep the market supported. Ultimately, the $3.00 level is an area that I think a lot of people will have to pay close attention to as it is a large, round, psychologically significant figure. Furthermore, we have the 50-Day EMA sitting just below there, therefore it is likely that it will have a lot of technical confluence attached to it.

The natural gas markets have a lot of reasons to propel them higher over the next couple of months, not the least of which will be the fact that the Europeans are running out of places to get natural gas, and almost certainly will be forced to go to the United States. Liquefied natural gas is very expensive to transport and will have a direct effect on this contract.

If we turn around and break above the highs of the last couple of days, then the market is likely to go looking toward the $4.00 level, and then possibly even the $5.00 level. All things being equal, this is a market that also has a certain amount of cyclicality attached to it, so I do believe that the increasing demand will be another thing to pay close attention to as well. After all, this time of year you start to focus on colder temperatures in the United States and the European Union.

Even if we did break down below the 50-Day EMA, I think there is plenty of support underneath that will continue to lift this market over the next several months. It is worth noting that during the Wednesday session, the market pulled back to the 200-Day EMA, only to bounce. The question now becomes whether or not we can do it again. Even if we don’t, there are plenty of buyers underneath. In general, this is more or less an investment, and not a short-term trade.

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