Natural Gas Price Forecast – Natural Gas Markets Continue to Chop at SupportNatural gas markets have seen quite a bit of choppiness on Thursday as we sit above a major support level. The $1.60 level continues to be crucial.
Natural gas markets have gone back and forth during the trading session on Thursday, as we continue to see a lot of volatility in general. The natural gas markets are at extreme low levels, and therefore think with this it is likely that we are going to see a lot of interest in value hunting down in this general vicinity. The $1.50 level underneath is a massive support area, that I think it extends out to the $1.60 level. If we can continue to bounce from here, the markets highly likely to go looking towards the 50 day EMA above.
NATGAS Video 19.06.20
This market looks as if it is trying to form some type of double bottom, so that of course is something worth paying attention to. The natural gas markets have seen the $1.50 level cause significant support in the past, so it should in the future. If we were to break down below that level, then I think that the market unwinds even further.
Ultimately, the market is going to continue to see a lot of buyers based upon the fact that there are plenty of suppliers and drillers in the United States going bankrupt. Eventually this will break down the supply situation, so that could cause a short-term pop. I do not necessarily think that the trend is ready to change, but I think we are getting very “long in the tooth” when it comes to the downtrend. With that in mind I would anticipate some type of bounce from here and likely increased volatility.
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