Natural Gas Price Forecast – Natural Gas Markets BounceNatural gas markets bounce a bit during the trading session on Monday to kick off the week, as the $1.80 level continues to be paid close attention to. This is the top of a major gap, so that of course is something to reason with as well.
Natural gas markets have bounced a bit during the early hours on Monday to show signs of strength again near the $1.80 level. The area below $1.80 features a gap that extends down to the $1.70 level. That is an area that should offer support, so at this point in time it is likely that we will see a bit of a “buy on the dips” type of mentality. With the announced production cut of crude oil out of Saudi Arabia, it is likely that the natural gas markets may get a little bit of a boost as a “knock on effect.”
NATGAS Video 12.05.20
If we were to break down below the $1.70 level, that would of course change a lot of things, and perhaps open up the door down to the $1.60 level. To the upside, I believe the market is likely to go looking towards the $2.00 level, and then possibly even the 200 day EMA which is closer to the $2.12 level. At this point, I believe that the market is trying to change the overall trend, and that is normally a very messy affair. That being said, expect a lot of volatility in be careful with your stop losses.
All things being equal, you should keep your position size small because things could change rather rapidly. With that in mind, I believe that a longer-term bullish position can start to be established, but the futures market may not be the place to do it considering that there is so much in the way of danger when it comes to these contracts and volatility.