Natural Gas Price Forecast – Natural Gas Markets Continue To Walk Across Trendline

Natural Gas Price Forecast Video for 04.12.23

Natural Gas Technical Analysis

Natural gas markets have initially gapped to the upside at the open on Friday, only to turn around and fall again. At this point, it looks like the market is trying to do everything he can to turn around and rally, and I do suspect that if we break above the highs of the previous 2 candlesticks, that would be a very strong sign. We are currently sitting on a major uptrend line, and happen to be sitting at the 50% Fibonacci retracement level. It’s very much worth noting that the cyclical trade does favor natural gas rising, but there are a whole litany of things out there that are causing issues.

Looking at this market, there are several different reasons to think that the market could move in either direction. There is the well-known problem with the European Union and its lack of natural gas supplies this winter, and it does seem rather dire for that continent at the moment. Ultimately, I think you’ve got a situation where you have to pay close attention to the Ukraine situation, because a lot of natural gas is not making it to the EU right now. On the other hand, warmer temperatures in the United States have driven down pricing as of late, and it looks as if traders believe that winter is never coming. There is a big supply of natural gas currently, so we have seen natural gas breakdown.

This is why retail traders have no business trading in the futures market, because not only is the contract expensive, the market tends to move based on weather. This is why I have chosen to be involved in the ETF markets, and currently am right around breakeven. This is an investment, and that’s how you have to treat this market. If you have the ability to trade CFD markets, that can bring down the leverage and help you hang on through this pullback. It’s worth noting that the recent rally had been 40%, so a 50% Fibonacci level pullback makes quite a bit of sense.

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