Natural Gas Price Forecast – Natural Gas Markets Continue to See Resistance Just Above

Natural Gas Price Forecast Video for 28.06.23

Natural Gas Technical Analysis

Natural gas markets have pulled back slightly during the trading session on Tuesday as the $3.00 level continues to be significant resistance. As long as we stay underneath there, I would have to assume that we are more or less continuing to consolidate at this point, as the market is in the midst of the summer range. The $3.00 level has been an area of significant resistance, and that continues to be the case. With that being the case, I do think that this is a situation where the market is just simply hanging about and trying to figure out if and when we can break out to the upside. Remember, we have the major concerns of the Europeans trying to refill their natural gas stocks heading into fall and winter. However, it may be early for that, but it is worth noting that we have seen a lot of base building this summer.

Underneath, the 50-Day EMA comes into the picture as potential support, so if we were to reach that area, we may see this market turned around and show signs of life. On the other hand, if we were to break down below the 50-Day EMA, then the $2.00 level is a major support level.

That being said, I look at natural gas as something that set up for a great investment for the 2nd half of the year. I’m looking for some meaningful dip to start scaling into a position in this market. It comes down to the fact that, eventually, the demand coming out of Europe will be very significant, and I do think that we have a situation where the market is likely to continue to see that as a major driver. This will be especially true later we get in the summer, but we may have the occasional heat wave or temperature spike in the northern hemisphere that could have the market sending natural gas higher between now and then, but it should be noted that it is a relatively short-term move more likely than not that would happen. Longer term though, I think this pair could go to $5.

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