Natural Gas Price Forecast – Natural Gas Markets Drift Lower

Natural Gas Price Forecast Video for 22.06.23

Natural Gas Technical Analysis

Natural gas markets have fallen a bit during the trading session on Wednesday as it looks like we are going to continue the overall consolidation that we have been in for some time. The 50-Day EMA attracts a lot of attention, and therefore I think a lot of traders will be looking at this as a “point of fair value” in this market as it is also flat. I believe that the $2.00 level underneath continues to be the support level that a lot of traders pay close attention to, and perhaps longer-term traders are trying to build a position on.

On the upside, the $3.00 level above is a significant resistance barrier that a lot of people are paying close attention to, so I think you need to look at that through the prism of potential buying pressure and a potential ceiling in the market through the rest of summer. That being said, I continue to reiterate the idea that natural gas will have a very strong move going forward, but that’s probably closer to the end of the summer, as the Europeans will have to build supplies backup. Remember, Russia is no longer supplying the European Union, and of course Norway cannot fill the difference in supply. The massive Groningen gas fields in the Netherlands are shutting down, so that adds even more pressure to liquefied natural gas coming out of the United States, which of course this contract follows very closely.

With that being said, I continue to look at this as a range bound market that we can trade back and forth, but I do like the idea of buying dips more than fading rallies like I once did, as I believe that sooner or later we will have a massive breakout.

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