Natural Gas Price Forecast – Natural Gas Markets Have Choppy Friday

Natural Gas Price Forecast Video for 06.11.23

Natural Gas Technical Analysis

Natural gas markets have gone back and forth during the course of the trading session on Friday, as we continue to hang around the $3.50 level in the futures market. We have the 200-Day EMA sitting underneath, offering a bit of a floor. If we break above the highs of the last week, then the natural gas markets will probably go looking to the $4.00 level, which would make a certain amount of sense considering that the natural gas markets typically rise during the winter, as there will be a lot more demand.

Furthermore, the Europeans also have to deal with the idea that the Russian natural gas is no longer available and of course we have had the coup d’état’s in Western Africa that threatened the supply coming out of the trans-African pipeline. Beyond that, we also have a pipeline between Estonia and Finland that has been damaged recently, so it all comes together to make it a cold winter for the Europeans.

Keep in mind when you’re trading the natural gas markets, you are essentially trading US natural gas, as the most widely quoted natural gas contract in the world is the Henry Hub natural gas market, which is in Louisiana. With that being said, the market continues to be very noisy, but I do think that every time the market pulls back, traders will come in and pick up natural gas going forward based on value.

The 50-Day EMA underneath is rising, and it looks like we are getting ready to see that indicator break above the 200-Day EMA, which is the “golden cross” indicator that a lot of people like. All things being equal, this is a market that looks very bullish, and if you are cautious and don’t jump “all in” right away and build up a position slowly. I have been doing exactly that for several months, so I think at this point in time my cost basis is safe, therefore I continue to add little bits and pieces along the way in a non-levered vehicle like the ETF market. Futures markets are probably a bit much, but you can use CFD markets to trade with a reasonable size.

For a look at all of today’s economic events, check out our economic calendar.