Natural Gas Price Forecast – Natural Gas Markets Continue To See Support Underneath

Natural Gas Price Forecast Video for 16.11.23

Natural Gas Technical Analysis

Natural gas markets rallied a bit during the trading session on Wednesday, as we continue to see a lot of volatility. Interestingly enough, the uptrend line underneath continues to hold support, and we are hanging around the 50-Day EMA, an indicator that a lot of people have paid close attention to. Just above, we have the 200-Day EMA offering resistance, which previously had offered support. We are getting somewhat close to the idea of a “golden cross”, when the 50-Day EMA breaks above the 200-Day EMA. This is a very bullish sign, and a lot of people will be paying close attention to it.

Underneath, if the market were to break down below the recent swing low, that would obviously be a negative turn of events, and could send natural gas much lower. However, this time of year is typically very bullish for natural gas, as temperatures drop and demand for natural gas picks up in places like the United States and the European Union. Speaking of the European Union, the Europeans have a major problem this winter, in the sense that they don’t have enough supply now that the Russians are not supplying natural gas, and of course a couple of pipelines have been damaged that would supply the EU. While they have signed a deal with Qatar, the Qatari’s also have promised a huge portion of their natural gas to the Chinese. In other words, it’s a very noisy environment that will continue to favor higher pricing.

One thing that is weighing upon the pricing of natural gas is going to be the fact that the global economy could be heading into a recession, so that will of course affect the idea of electricity demand, which quite often is driven by natural gas. Nonetheless, the market also has to keep in mind the heating, which will probably outweigh any lack of electrical demand. I have been trading this market with almost no leverage, using the ETF market, but you can use the CFD market if you don’t have that possibility. The futures market is very noisy, and therefore can be very dangerous. Either way, I do think we go higher.

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