Natural Gas Price Forecast – Natural Gas Goes Back and Forth for the Day

Natural gas markets have gone back and forth during the trading session on Tuesday as we are struggling with the idea of the $2.60 level. If we can break above there, then it is likely that the market could go even higher. That being said though, I think that short-term pullback makes quite a bit of sense and the $2.40 level will probably be a reasonable target for short sellers, but quite frankly I have no interest in doing so.

NATGAS Video 26.08.20

I do believe that the $2.40 level should offer a certain amount of support, but even below there it is likely that the $2.20 level will also offer support. That being said, I think it is only a matter of time before the value hunters come back in, but quite frankly I think we are a bit stretched here. The US dollar falling has helped the natural gas markets rise, but more importantly we have had a couple of tropical storms rip through the Gulf of Mexico, shutting down a lot of production.

At the same time, we are heading into the colder months and therefore we could get a little bit of a boost due to demand as well. We have seen demand rally a bit previously, as the western part of the United States was hit with a massive heat wave. All things being equal, looks as if we still have a longer-term uptrend trying to form, but we most certainly need to pullback in order to find value. As things stand currently, I have no interest in shorting this market.

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