Natural Gas Price Forecast – Natural Gas Markets Continue to Try for $3.00

Natural Gas Price Forecast Video for 01.09.23

Natural Gas Technical Analysis

Natural gas markets rallied slightly to kick off the trading session on Thursday but have also pulled back rather quickly. This shows the unstable nature of the market, and the fact that the market participants will continue to try to push it to the upside. Underneath, we have the 50-Day EMA, which should offer a significant amount of support. That is an area that I think a lot of people will be paying close attention to, and therefore I would anticipate value hunters coming back into the picture there.

When you look at the overall attitude of the market, we have been forming a larger base, or perhaps even what some would classify as a major “rounded up bottom.” That doesn’t necessarily mean that we have to go higher, but there are a lot of other things that would suggest that we will. Ultimately, I think this is a scenario where it is a matter of cyclical trade coming back into the picture, with the cooler temperatures of fall and winter picking up demand for natural gas. Furthermore, we have the situation in the European Union which of course is going to be dire at best, as Russian gas is now completely out of the picture, and of course we have a lot of concerns when it comes to natural gas coming out of West Africa. In other words, the Europeans may be forced to buy a liquefied natural gas from the Americans, which will directly influence this contract.

If and when we can break above the $3.00 level, the next target will be the 200-Day EMA, followed by a wet I think is the longer-term target of the $5.00 level. Any pullback at this point in time will more likely than not offer value the people are willing to take advantage of, and I do believe that bigger players are continuing to buy into this trade. When you look at volume flows of the ETF markets, it’s obvious that somebody big is stepping in on each dip.

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