Natural Gas Weekly Price Forecast – Natural Gas Markets Breakout Finally

Natural Gas Price Forecast Video for 09.10.23

Natural Gas Weekly Technical Analysis

Natural gas markets have broken out during the course of the week after initially falling, breaking above the $3.00 level, and it now looks like we are ready to go into the cyclical trade. This makes a lot of sense, considering that we are getting toward the end of the year, and we are already trading November futures. Furthermore, the European Union will have to try to find its natural gas supply somewhere this year, because obviously Russia is out of the picture, and Norway cannot make up the difference. Furthermore, the coup d’état in Western Africa has put the viability of the trans African natural gas pipeline in question, and therefore it looks a lot like the Europeans will have to buy liquefied natural gas from the United States.

With this in mind, understand that the natural gas markets you are trading are based on the Henry Hub contract. In other words, comes out of Henry, Louisiana, meaning that it is a US price. Furthermore, there are cooler temperatures in the forecast, which of course has a major influence on this contract as well. Things are converging somewhat perfectly for the market right now, so I do think that it’s probably only a matter of time before we go racing higher. In fact, I would not be surprised at all to see the market move toward the $5.00 level over the next couple of months.

At this point, anytime this market pulls back it offers a buying opportunity, as we have clearly broken out and now it’s only a matter of time before FOMO traders jump in and start chasing the markets right along with those of us who have been building and accumulation phase.

For a look at all of today’s economic events, check out our economic calendar.