Natural Gas Price Forecast – Continue to Find Buyers Even on Down DayNatural gas had pulled back a bit on Monday to kick off the week, but there is still plenty of support. I am mildly bullish on this market going forward.
Natural gas markets pulled back just a bit during the trading session on Monday, as we continue to see the market try to reach towards the $2.00 level. We are above the 50 day EMA, so that of course in and of itself can be a bit bullish. With that in mind I like the idea of buying short-term pullbacks with a potential push towards the previously mentioned $2.00 level. To the downside, if we did break down below the 50 day EMA then I think that the $1.70 level starts to come in as support. After all, natural gas usage is up in the United States as temperatures have been extraordinarily hot.
NATGAS Video 28.07.20
Furthermore, we have a lot of bankruptcies out there and as we are at essentially a crossroads when it comes to the longer-term outlook for the industry, with supply likely coming down in the future. This does not mean that we get some type of major breakout, just that the worst of the selling pressure is probably over. Because of this, I anticipate that we will drift towards the 200 day EMA, which is currently sitting just below the $2.00 level above. I think that this market is essentially in a major range, between the $1.50 level on the bottom and the $2.00 level above. That being said, the question is whether or not it will end up being a bit of a base for the wintertime, as that could bring in higher prices?
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