Natural Gas Price Forecast – Natural Gas Markets Make a Fresh High

Natural Gas Price Forecast Video for 31.10.23

Natural Gas Technical Analysis

Natural gas markets have rallied again during the trading session on Friday, as we have made a fresh, new high, showing just how bullish this market is about to get. Ultimately, the natural gas markets are going to see a plethora of reasons for going higher, not the least of which will be the fact that we are heading into the winter. That being said, the market will continue to focus on the fact that the Europeans do not have a stable supply of energy. They certainly do not, because most of the natural gas that Germany and other major economies in the European Union are going to need is going to be a situation where they are bringing in over from the United States.

This is a market that is based on the US supply of natural gas, as it is based on the futures contract called “Henry Hub Natural Gas.” This is based on the terminal at Henry, Louisiana. This means that it’s very likely the traders are pricing in the idea that the Europeans are going to have to buy Liquefying Natural Gas and bring it over across the Atlantic Ocean.

This is a very expensive way to do it, but unfortunately for the Europeans, Russian gas is not heading online anytime soon, and of course we have seen the Nordstream II sabotage, and there has also been purposeful damage to the pipeline between Finland and Estonia. Adding more troubles to the situation is the fact that Western Africa continues to see the coup d’état in several countries putting the idea of a trans African supply of natural gas for the European Union in jeopardy as well. In other words, the Europeans are in a lot of trouble.

Short-term pullbacks will continue to see support out the 200-Day EMA, and then of course the $3.00 level which is a large, round, psychologically significant figure, and an area that previously has been a significant resistance barrier. “Market memory” will come into the picture, but quite frankly I would be very surprised if the market were to drop down to that area again.

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