Natural Gas Price Forecast – Natural Gas Markets Continue to Chase 50 Day EMAThe natural gas markets have rallied a bit during the trading session on Tuesday to reach towards the 50 day EMA.
Natural gas markets have rallied a bit during the trading session on Tuesday to reach towards the 50 day EMA again. Furthermore, the market is testing the top of the exhaustive candlestick during the trading session on Monday. By doing so, it is likely that the market is going to continue to see a lot of back-and-forth trading. If we can break above that candlestick, then it is likely that we go looking towards the $2.00 level. That is an area that will cause a bit of resistance, so I think it makes a nice target for traders who are bullish.
NATGAS Video 20.05.20
If we pull back from here, I will anticipate that the gap below offers support near the $1.65 level, so I think that will be your new “floor” in the market. We have been trying to build up a bit of support in this region, and perhaps continue the series a “higher lows.” I think that we will eventually go looking to reach towards the upside but given enough time we could continue to go higher based upon the fact that there are a lot of companies out there that are likely to go bankrupt, thereby driving down some of the supply. (At least that is the theory.)
The biggest problem that this market has is that there is far too much in the way of supply, so it looks like traders are trying to bet on natural gas going higher based upon the bankruptcies, and of course the possibility of the market seeing economies open back up, but to be honest I think it is a bit difficult to place your trust in that.