Natural Gas Price Forecast – Natural Gas Markets Bounce from 50 Day EMANatural gas markets rallied a bit on Tuesday, using the 50 day EMA as a bit of a support level. This continues the overall grind higher that we have seen.
Natural gas markets have rallied a bit during the trading session on Tuesday as the 50 day EMA has offered support yet again. It looks as if we are trying to build up enough pressure to make the next move, and therefore I think it is only a matter of time before we get a better trade. In the short term, it looks as if we will continue to go back and forth and what would be best described as a scalpers type of market. However, I think we still have further to go to the upside, perhaps reaching towards the 200 day EMA at the $1.97 level.
NATGAS Video 29.07.20
When I look at the longer-term chart, I recognize that we are likely to see more of a range bound play between the $1.50 level on the bottom and the $2.00 level on the top. That being said, it also is worth noting that it looks as if we are trying to form some type of basing pattern, perhaps giving an opportunity for the market to rally into the wintertime when we finally get to this point.
If we could break above the $2.00 level it is likely that we could go much higher, and with the massive amount of bankruptcies that we are seeing, it is likely that we will see supply drop eventually. Beyond that, we also have massive amounts of heat in the United States that have been driving up the demand for the commodity at the same time. Longer-term though, we still have an oversupply issue. This will continue to chop back and forth.
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