Natural Gas Price Forecast – Natural Gas Markets Bounce

Natural gas markets initially dropped a bit during the trading session after capping higher on Thursday, but then found enough support once the market reached the $1.60 level, and finally they have bounced from the $1.60 level, an area that has been incredibly supportive in the past. By bouncing the way it has, the market shows that there is still support in this region, and that the market is likely to try to go looking towards the $1.80 level. At this point in time, the market is due for a bounce regardless, perhaps reaching towards the 50 day EMA above. The $1.80 level is an area where those traders will find the 50 day EMA, and then perhaps even the $2.00 level above could be a target.

NATGAS Video 15.05.20

At this point in time, the market should see plenty of support at the $1.60 level, and that does not bode well for a continuation of a bottoming pattern, something that I think is going to take quite a bit of time. Because of this, I am looking at buying opportunities, and it does look like we have one. Nonetheless, it is difficult to hang onto natural gas in this type of environment, but we have reached the bottom of the overall range, and as a result it makes sense that a certain amount of value hunting is going on down here. That being said though, we have a long road ahead in order to keep this market somewhat stable. Keep small positions, over leveraging at this point could be dangerous. Nonetheless, it does look like natural gas is trying to turn the corner finally.