Natural Gas Price Forecast – Natural Gas Markets Looking for Floor

Natural Gas Price Forecast Video for 22.11.23

Natural Gas Technical Analysis

Natural gas markets have done very little during the trading session on Tuesday as we are trying to find some type of stability. The $3.00 level in the futures market could offer a bit of support, and an area that buyers could start to look for value. Quite frankly, this has been a very nasty pullback, but when you look at the totality of the move higher, it is still within the realm of normalcy.

The question now is whether or not we continue to go higher, and quite frankly I do think that a bounce is coming. At this point, if we can break back above the 200-Day EMA, that more likely than not will kick off a bigger move to the upside, with an attempt to break above the $3.75 level, possibly even the $4.00 level given enough time. I do think this is the most likely outcome, but I also recognize that natural gas had gotten far ahead of itself.

Keep in mind that the market has to price in the idea of winter coming, as demand will pick up in both the United States and the European Union. Speaking of the European Union, it also has to worry about the idea that there may be a severe lack of natural gas for the winter, and therefore it should drive pricing higher. However, traders are currently trying to price in a recession, so there are concerns about demand in general. While that might be true with electric demand, it certainly should not affect heating as far as residential is concerned. Quite frankly, at this point it does make quite a bit of sense that we would see the market bounce, so the question now is whether or not we get the momentum so I can start adding to my existing position?

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