Natural Gas Price Forecast – Natural Gas Markets Building a Base

Natural gas markets opened up the day on Thursday slightly positive, reaching towards the $2.60 level. However, we have pulled back from there rather significantly and it does look like we are trying to build a little bit of a base around the 50 day EMA to show some signs of stability. That being the case, the market will probably look at the 50 day EMA as a proxy for support due to the fact that there is a gap in that region, so that of course is worth paying attention to.

NATGAS Video 02.10.20

Beyond all of that, the market is likely to see a lot of noise around the natural gas markets as they are so heavily influenced by regional weather. The US dollar has been all over the place during the trading session so that of course has introduced a bit more noise into this market then you would expect, but at the end of the day the natural gas markets are heading into the most bullish time of year, so I do not have any interest in trying to short this market anytime soon. Even if we were to break down below the $2.40 level, there are a couple of levels underneath that I think could attract buying pressure as well.

I think that we will make another attempt to reach the $3.00 level, which is obviously a very important psychological and technical barrier. Nonetheless, that is a very juicy target that I think a lot of people will be paying close attention to. With that in mind, I like the idea of buying dips going forward.

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