Natural Gas Price Forecast – Natural gas markets continue to build base

Natural gas markets have initially tried to rally during the trading session on Tuesday but gave back the gains above the 200 day EMA. By doing so it looks as if the market is ready to continue the overall grind in this vicinity. This makes a certain amount of sense considering that the $2.50 level of course is a large, round, psychologically significant number and the longer term we certainly have seen a lot of negativity. That being said though, we are reaching the time of year where you normally get a bit of a rally in the natural gas markets, as the Americans and the Europeans are likely to need more to heat their homes.

NATGAS Video 25.09.19

At this point, if we can break above the top of the daily candle stick for the Tuesday session, that would be a very bullish sign and could send this market much higher. Not only would it be a breaking of the selling pressure for the day, but it would also be the market clearing the 200 day EMA again. With that, the market would more than likely continue to reach towards the highs again and continue the impulsive move to the upside that has recently started as we are trading November as the front month contract. To the downside, if we break below the $2.50 level it’s very likely that we will look towards the 50 day EMA at the $2.40 level as support.

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