Natural Gas Price Forecast – Natural Gas Markets Continue BreakoutNatural gas markets broke higher on Tuesday as the heatwave in America continues. Demand has spiked, and it looks like we are going towards the $2.00 level.
Natural gas markets have rallied a bit during the trading session on Tuesday, reaching the $1.90 level. The $2.00 level above will be the target eventually, so I think that is something worth keeping in the back of your mind. Because of this, I remain bullish in the short term, but I recognize we may need to pullback after a 10% rise over the last couple of days.
NATGAS Video 08.07.20
Keep in mind that the natural gas markets have been looking for a reason to rally for ages now, and now that we have more demand and perhaps even more importantly, more bankruptcies, the supply/demand ratio could start to look a little bit better. With that being said, the market is likely to continue to see bullish pressure, but clearly, we cannot go in one direction forever. It is because of this that I fully anticipate some type of pullback, it would be extremely interested in trying to buy natural gas near the 50 day EMA again.
Just above, the $2.00 level offers the 200 day EMA which will of course attract a lot of attention, it should be a bit of a resistance barrier. This moving averages one that followed by a lot of longer-term traders, so it would make sense to see some selling in that area. After all, longer-term natural gas has major issues due to the oversupply issue, so I do not know that this is a massive trend change, but a repudiation of the $1.50 level which has been massive support multiple times over the years.
For a look at all of today’s economic events, check out our economic calendar.