Natural Gas Price Forecast – Natural Gas Markets Pull Back

Natural Gas Price Forecast Video for 02.11.23

Natural Gas Technical Analysis

Natural gas markets have dropped a bit during the early hours on Wednesday, but it should be kept in mind that the market is still very bullish, and we had an explosive day to the upside during the Tuesday session, perhaps attempting some traders to step in and take a little bit of profit. The 200-Day EMA sits just below, and I do think it continues to offer a bit of support. With this being the case, and the fact that the 50-Day EMA is racing toward the 200-Day EMA, getting ready to form the so-called “golden cross”, there’s a really good chance that we will continue to see buyers on these dips.

It is the time of year when natural gas typically has a strong rally, due to the demand coming out of the northern hemisphere. As winter approaches, it makes a lot of sense that traders will continue to look toward the natural gas markets to generate a little bit of alpha and their portfolio as demand will certainly pick up. This year is going to be a little bit of an outlier due to the fact that the Europeans have absolutely no real setup at this point to supply all of the natural gas they would need. This means they will be importing LNG from the United States, which directly influences this contract.

I like the idea of buying dips and I have been involved for quite some time. I suspect it is only a matter of time before we not only break out to a fresh, new high, but go looking to the $4.00 level, and then my longer-term target of $5.00 by the end of the winter. Every time this market pulls back, I look for opportunities to add to an already existing position, in small increments. You do have to be cautious with the futures markets as they are so volatile, but at the end of the day, they will probably pull to the upside right along with other markets such as CFD and EFT markets, which allow you to tailor your position size. I have no interest in shorting this market anytime soon, and I think it is probably only a matter of time before you get rewarded.

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