Natural Gas Price Forecast – Natural Gas Markets Bounce HardThe natural gas markets broke down significantly during the trading session on Wednesday, only to turn around and bounce from important $2.40 level.
Natural gas markets have shown themselves to be somewhat resilient as the market has fallen down towards the $2.40 level before bouncing a bit. That is a major support level in the sense that it is a gap on the charts that should be respected, and therefore I think at this point we are looking for some type of bounce to take advantage of.
We may have just had it, and if we break above the top of the candlestick for the trading session, then I think it gives us an opportunity to go towards the $2.70 level. At this point in time, I think that the market probably has plenty of support underneath. The gap of course is an area that should be paid close attention to, but there are other areas underneath that I might be interested in as well.
NATGAS Video 03.09.20
To the downside, we have plenty of support near the $2.20 level, and we have recently had the so-called “golden cross”, when the 50 day EMA crosses above the 200 day EMA. This is considered to be a very bullish sign by longer-term traders; therefore, I think we still have more of a longer-term upward bias according to the technicals. This does not mean that we cannot pull back, and quite frankly should look at a pullback as a potential buying opportunity. I think at this point, as we head into the colder months of the year in the northern hemisphere, it is likely that the demand for natural gas will continue to skyrocket.
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