Natural Gas Price Forecast – Natural Gas Markets Bounce

Natural Gas Price Forecast Video for 07.09.23

Natural Gas Technical Analysis

The natural gas market has been slightly positive during the Wednesday session, as the market continues to consolidate overall. The 50-Day EMA is sitting right around this area as well, and it’s likely that we continue to go back and forth. All things being equal, this is a market that I think continues to see a lot of questions asked of it, because of the world when of potential drivers.

Keep in mind that the European Union continues to struggle to find enough natural gas for this winter, and this is the entire thesis of the trade that I have put on in this market. I have used non-levered positions, via the exchange traded fund markets, allowing me to hang on to a position for much longer than I normally would in the futures market. This is because we do not know the timing of when the market takes off, but there is a cyclical trade that is about to kick off. After all, demand for natural gas does pick up later in the year, and therefore it’s quite common to see natural gas rally sometime in the fall, and this is a well-known trade. The market has other things to pay attention to though, almost all of which point to higher prices.

The European Union will have trouble finding enough natural gas, and the only real solution that they have is to buy a liquefied natural gas from the Americans. The natural gas contract that you are trading going to be based on the US market, and therefore it’s only a matter of time before the Europeans come in and start buying up supply.

If we can break above the $3.00 level, then the market could open up the possibility of a move to the 200-Day EMA. After that, then he could see the market go looking to the $5.00 level over the course of a couple of months. Underneath, we have plenty of support extending all the way down to the $2.00 level, but that does not necessarily mean that we will get the occasional pullback. Think of this as an investment, not a short-term trade.

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