Natural Gas Price Forecast – Natural Gas Markets Continue to Walk Along the Moving Average

Natural Gas Price Forecast Video for 31.08.23

Natural Gas Technical Analysis

The natural gas markets continue to march along the 50 Day EMA indicator, an indicator that a lot of people will be paying close attention to if they are technically inclined. Above, we have the $3.00 level, a value that stands out as a prominent, whole-number milestone with psychological importance. Moreover, it also serves as a focal point for the accumulation of options barriers, adding to its significance. In other words, I don’t think that we blow through the $3.00 level very easily, but once we do it almost certainly means something. With that being the case, I’m looking at this through the prism of a market that is building up a base for the winter.

Keep in mind that this is a very well-known cycle, that natural gas tends to pick up toward fall. That being said, we also have to look at this through the prism of whether or not there is going to be enough natural gas for the demand that’s coming. While I do think that large portions of the earth will be fine, one particular area of trouble will be the European Union, as they no longer have Russian gas anymore, and African gas may be a problem as well.

With that being said, it looks like we are building a bit of a base in this market, and I think that given enough time we probably have a break above the $3.00 level, reaching toward the 200-Day EMA. After that, then it’s likely that we go looking to the natural gas market toward the $5.00 level. I have no interest in shorting natural gas, and I do think that a pullback from here only adds more value that people will be willing to take advantage of. I currently am invested in natural gas via the ETF markets, but CFD markets might work as well, because it allows you to build up a position without getting highly levered, which could be very dangerous if you are in the futures market. Options are difficult to trade at the moment, simply because the market is so choppy but small in its overall range.

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