Natural Gas Price Forecast – Natural Gas Markets Rebound

Natural Gas Price Forecast Video for 06.12.23

Natural Gas Technical Analysis

Natural gas markets have rallied a bit during the trading session on Tuesday, breaking above the $2.64 level in early trading. At this point, people are starting to look at the possibility of cold weather coming into the picture, and quite frankly the market has fallen so hard that it does make a certain amount of sense that traders will be coming in to “pick up this market based on value”. Ultimately, the $2.70 level is an area that a lot of people will be paying close attention to and therefore if we do break above there, then I think the natural gas markets truly start to take off.

Underneath, the $2.50 level is an area that a lot of people will pay close attention to, especially as the market is right around the 61.8% Fibonacci level. Ultimately, this is a market that has seen a lot of questions asked about the potential demand or perhaps even more importantly, the oversupply of natural gas. However, I think you got a situation where you need to be very cautious with the idea of jumping into the market with the use position, because we have seen a lot of pain over the last couple of weeks. It’s not to say that we can’t go higher, because I think sooner or later, we do. However, you have to be cautious with leverage, and recognize that you cannot risk too much on anyone position at this point. I had been bullish previously in this market, but ultimately at this point is a situation where we need to be very cautious about where we are putting money to work.

Pay attention to the 20-Day EMA indicator above, because that could come into the picture, right along with the 50-Day EMA after that. I think we probably bounce from here, but it is more likely than not going to be a significant fight from these levels as natural gas has a lot of crosswinds at the moment, and need some type of cold snap in the northeastern part of the United States to really get moving. If and when it gets it, natural gas should start to take off again.

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