Natural Gas Price Forecast – Natural Gas Markets Continue to Hang on to $3

Natural Gas Price Forecast Video for 20.10.23

Natural Gas Technical Analysis

Natural gas markets have fallen a bit during the course of the trading session on Thursday, reaching to the $3.00 level, which of course is a large, round, psychologically significant figure, and an area where we have seen resistance and support in the past. The 50-Day EMA is racing toward that area as well, so I think it does make quite a bit of sense and therefore it’s probably only a matter of time before the buyers come in and try to pick this market up.

When you look at this chart, the market is obviously trying to stick with the breakout we recently had, and it’s also worth noting that the cyclical trade is starting to come into focus, as the cooler temperatures will drive up demand for natural gas. Furthermore, we have to worry about supply in the European Union, which of course is going to be the main story this winter. If we can break above the 200-Day EMA above yet again, then the market is likely to go higher. The $4.00 level is a large, round, psychologically significant figure and a target that a lot of people will be looking for. Quite frankly, I think we probably go as high as a $5.00 level in the dead of winter, especially now that supply becomes a major issue as well.

Even if we were to break down below the 50-Day EMA, then it’s likely that we continue to see a lot of value hunting, and I am investing in natural gas, not trading it, meaning that the day-to-day noise doesn’t concern me much, as I am using an ETF to take advantage of the cyclical trade. Trading a highly levered position is very difficult to do in natural gas because quite frankly it is a market that moves on weather patterns and the like. Unless you have the ability to become a meteorologist, you are better off trading the natural gas markets from the longer-term standpoint with lower leverage. It can be profitable, but I have seen a lot of retail traders get wiped out by trying to pick out the next short-term move.

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