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Natural Gas Price Forecast – Natural Gas Continue to Trade Range

By:
Christopher Lewis
Published: Oct 7, 2020, 15:48 UTC

The market looks likely to continue to go back and forth in this vicinity, while we try to see the damage is done by the hurricane in the Yucatán Peninsula.

Natural Gas

Natural gas markets have rallied a bit during the trading session on Wednesday, breaking above the $2.60 level to show signs of resiliency again. However, there has been a lot of resistance just above there, and therefore I think it is going to be difficult to break out to the upside. Having said that, this will move on the latest hurricane headlines, so that is something that you have to be cautious about. To the downside, the $2.40 level looks to be massive support, especially as the 50 day EMA is sitting right at that same level.

NATGAS Video 08.10.20

Looking at the chart, the market continues to see a lot of choppiness, and therefore think it is very difficult to get overly excited. Ultimately, this is a market that I think does have more of an upward proclivity than anything else, so I believe at this point it is a “buy the dips type of scenario, and that we should continue to see a lot of back and forth.

To the downside, even if we break down below the $2.40 level, it is likely that we will see even more support closer to the $2.20 level, which is where the 200 day EMA is currently sitting, which is also a longer-term indicator. Ultimately, I have no interest whatsoever in shorting this market, and I do think that demand will continue to pick up late in the year as there is certainly a lot of cold temperatures coming down the road.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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