Natural Gas Price Forecast – Natural Gas Markets Hanging on to the 50-Day EMA

Natural Gas Price Forecast Video for 05.09.23

Natural Gas Technical Analysis

Natural gas markets have gapped a bit lower to kick off the trading week on Monday, but keep in mind it was Labor Day in the United States, so the liquidity would’ve been a major issue. This being the case, I think the market will eventually try to get to the $3.00 level, and of course the $3.00 level is a large, round, psychologically significant figure, and an area where it would bring in a lot of “FOMO trading.”

Breaking above the $3.00 level allows the natural gas markets to go looking toward the 200-Day EMA, perhaps even a move to the $5.00 level. Ultimately, this is a situation where you have to pay close attention to whether or not we can break above that initial barrier, and we should consider that the market is likely to continue to see the cyclical pattern repeated itself, as natural gas demand will pick up as we head into colder temperatures in the northern hemisphere.

Furthermore, you have the European Union and its issues when it comes to supplying natural gas to heat homes this year, and of course produce electricity. For example, Germany is struggling due to the Nordstream II magically disappearing, as it was a major source of energy. In fact, Germany is now importing more energy than ever. This is a situation that is not going to fix itself, and with the coup d’état in several countries in Western Africa, a trans African pipeline solution is very unlikely to sort itself out in the short term.

If we were to break down below the 50-Day EMA, then we have the $2.50 level that could offer significant support, but at the end of the day, the market has been forming a major rounding bottom, and that of course is a situation where I would anticipate even more buyers coming into the picture. Quite frankly, this is an investment and not a short-term trade, so I have kept my position unlevered, as I use ETF instruments, but there are also CFD markets, etc. that you can get involved in.

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