Natural Gas Price Forecast – Natural Gas Markets Continue Pull BackNatural gas markets have pulled back just a bit on Friday but still look as if there are plenty of buyers underneath waiting to get involved.
Natural gas markets have initially tried to rally during the trading session on Friday but gave back the gains in order to form a less than ideal candlestick. That being the case, the market looks as if it is struggling to bet and it is also likely that we may get a little bit of follow-through. Nonetheless, I am not a seller here because I see plenty of buying opportunities underneath and I think that we are starting to see a significant amount of support in general. The 20 day EMA has just crossed above the 50 day EMA, a bullish sign indeed. Regardless though, I am not looking for a bigger move, rather I am looking for a continuation of the overall range.
NATGAS Video 03.08.20
The range is between the $1.50 level, and the $2.00 level. As long as we do not break out of this range, I think a simple back-and-forth type of trading strategy might work, but I prefer buying the dips as we have seen so much in the way of resiliency. Furthermore, we have a lot of bankruptcies in this sector that will continue to drive down the overall supply, just as the extreme heat in the United States has increased the demand. Overall, I think this market continues to grind back and forth until we get colder temperatures, and then at that point we may finally see a bit of a breakout to the upside. The reason I say this is that the $1.50 level has been crucial for support going back years. A breakdown below that level would be an extraordinary sight to behold.
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