Natural Gas Price Forecast – Natural Gas Markets Recover at 200-Day EMA

Natural Gas Price Forecast Video for 01.11.23

Natural Gas Technical Analysis

Natural gas markets have bounced a bit during the trading session on Tuesday, as the 200-Day EMA continues to come into the picture to offer support. The market is in the midst of a consolidation range, so I do think that it is probably only a matter of time before we reach to the top of it again. If we can break above the top of the shooting Star from Friday, this is a market that could really start to take off, heading toward the $4.00 level.

On the other hand, if we were to break down below the 200-Day EMA, then the 50-Day EMA will come into the picture for potential support as well, followed by the $3.00 level. In general, this is a market that I think is going to continue to drive higher, but it is, of course going to be noisy, which is something that you can almost always count on when it comes to natural gas markets. All things being equal, I do think that we continue to see upward pressure due to not only the fact that the 200-Day EMA comes into the picture, but you also have to worry about the cyclicality of this market as we are heading into colder weather in the northern hemisphere.

Beyond all of that, you have to worry about the European Union and its supply. The lack of supply coming out of Russia is going to be a major issue, and then of course we have a lot of concerns when it comes to natural gas coming up out of Western Africa, and of course the war in the Middle East is going to make things much more difficult. Furthermore, the disruption of pipelines in the North Atlantic and northern Europe will continue to be a major issue. Ultimately, I do think that we go much higher, perhaps not only breaking above the top of the shooting star and reaching toward the $4.00 level, followed by the $5.00 level. I do think that we could hit the $5.00 level over the longer-term, but obviously we will have the occasional pullback between now and then, offering value that you can take advantage of.

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