Natural Gas Price Forecast – Natural Gas Markets Start to Bounce Slightly

Natural Gas Price Forecast Video for 05.01.23

Natural Gas Technical Analysis

Natural gas markets have rallied a bit during the trading session on Wednesday, after being sold off quite drastically over the last couple of weeks. I don’t think this is the beginning of a different trend waiting to happen, rather I think it is a situation where we have just gotten oversold to the point where people are starting to take profits. Remember, Europe is fairly warm at the moment, so demand has plummeted, and of course we have the Freeport terminal now pumping out natural gas as well.

That being said, one would think that cold weather will eventually show up, allowing the natural gas market to breathe a bit. At that point, we could rally all the way to the $5.00 level, which of course is a large, round, psychologically significant figure. Any signs of exhaustion will be faded, because it makes sense that we continue this overall trend, and quite frankly the $4.00 level could be thought of as a little bit closer to the normal levels that we would see this time a year. We will probably see a cold snap sometime this winter that will send the market soaring, but that should be a nice selling opportunity at the first signs of exhaustion.

The 50-Day EMA sits just below the $6.00 level, so therefore I think it’s very likely that we would see that area offer a bit of a short-term ceiling. I believe that anything above there would be rather impressive, but we are miles away from getting to that general vicinity so I’m not even worried about it.

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