Natural Gas Price Forecast – Natural Gas Markets Rally Again

Natural Gas Price Forecast Video for 17.11.23

Natural Gas Technical Analysis

Natural gas markets rallied on Thursday to test the 200-Day EMA, an indicator that of course that a lot of people pay close attention to. Ultimately, the market is continuing to see buyers on dips, and I think it probably will continue to be a situation where we drive the natural gas markets higher, as the demand for natural gas will certainly continue to increase as temperatures plummet.

Ultimately, I do think this is a situation where every time we pull back, the market is likely to continue to see a lot of demand, and I believe that the uptrend line underneath will continue to cause a lot of support. With this, I think you’ve got to look at this through the prism of continuing to go higher every time buyers find any sense of value. If we can break above the 200-Day EMA, then it’s likely that the natural gas markets will try to reach their recent highs, which has been heavily defended. Anything above there opens up a move to the $4.00 level, possibly the $5.00 level.

If we were to break down below the uptrend line, that would be a huge turn of events, but I don’t see that happening anytime soon. With this, I think you have to look at this through the prism of not only colder temperatures, but the fact that the European Union is going to be suffering with a lack of supply this year, meaning that they will have to buy natural gas at highly inflated prices, coming over to the United States to pick up quite a bit of it.

Regardless, it is a cyclical trade that I typically pay close attention to every year anyway, and the recent pullback is probably necessary as we had gained 40% from the bottom. It’s very likely that the market has pulled back enough to get people interested at this point, as we have tested the roughly 50% pullback, so it’ll be interesting to see if we can continue to keep the momentum up. There are a lot of questions about electricity demand, but quite frankly this is probably why natural gas may outperform crude oil.

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