Natural Gas Price Forecast – Natural Gas Makets Struggled a Bit to Close the Week

Natural gas markets have gone back and forth during the trading session on Friday as we are seen a bit of profit-taking after another strong week in the natural gas markets. That being said, I do not know that we have fallen enough to offer value that is worth risking any trading capital on, but it is a start. The $2.20 level is an area that I think continues to be of importance, and I would be looking to buy natural gas in that general vicinity. If we break down below there, the $2.00 level is even more enticing, as the 50 day EMA is currently trying to cross the 200 day EMA at that level, forming the so-called “golden cross.”

NATGAS Video 24.08.20

To the upside, I believe that this market will probably go looking towards the $2.50 level, possibly even the $2.60 level. With that being said, I prefer more of a pullback because it helps with the risk to reward ratio, as traders began to bet on natural gas going higher into the winter season in both the United States and Europe, and of course the fact that it has been extraordinarily hot in the American West, as well as we continue to get tropical storms disrupting natural gas at times.

The candlestick for the trading session is of course somewhat neutral, so it could show a little bit of short-term stability but at this point I am not willing to “pay up” in order to pick up a contractor to of the natural gas.

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