Natural Gas Price Forecast – Natural Gas Markets Continue To Build A Potential Base

Natural Gas Price Forecast Video for 24.11.23

Natural Gas Technical Analysis

Natural gas markets have been rather quiet during the trading session on Thursday as we continue to look like a market that is trying to find support, and it’s probably worth noting that the futures market is hanging around the $3.00 level, and of course the 38.2% Fibonacci level. At this point, I think it’s likely to be a situation where we go looking to the 50-Day EMA given enough time, and although this has been a rather brutal pullback, the reality is that the market had recently gained 40%, so this pullback does make quite a bit of sense.

As we head into the cyclical trade season, a lot of traders will start to focus on the fact that temperatures are going to drop, and this of course will drive up demand for natural gas. Furthermore, the European Union is going to have a major issue when it comes to supply, as obviously they will not be getting natural gas from Russia. Furthermore, it’s worth noting that the Nordstream II pipeline is not the only one that’s damaged, so therefore we have to worry about whether or not supply makes it. More likely than not, the Europeans are going to have to buy their natural gas from the Americans, driving up the price of this contract.

The one thing that is a little bit of a barrier for natural gas is the idea that the European Union is certainly going to be in a recession this winter, so industrial electricity demand could be down, but at the end of the day, it’s very likely that we continue to see buyers get involved in therefore I do like the buy on the dip mentality. As for myself, I have been trading in the EFT market, due to the fact that it can keep me from being overleveraged, and therefore it’s likely that I will be able to ride through any type of volatility such as we have seen over the last week or so. Regardless, I still believe that we are going to retest the highs, if not reach the $4.00 level, possibly even $5.00 before it’s all said and done.

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