Natural Gas Price Forecast – Natural Gas Markets Continue to Find BuyersNatural gas markets pulled back a bit on Wednesday only to find buyers again. It looks as if there is a lot of resiliency in this market.
Natural gas markets have shown a lot of resiliency during the trading session on Wednesday again, after we initially dipped but only to find buyers underneath. We are currently pressing the $1.90 level, and I do believe that we will break above there eventually. Ultimately, I think this is a market that is going to go and test the 200 day EMA, which is near the $1.975 level right now.
Above there, we obviously have the psychologically important $2.00 level, so that is something worth paying attention to as well. In fact, I think that we are essentially trading in a range between the $1.50 level on the bottom, and the $2.00 level on the top. With that in mind, I think that we are likely to see a lot of noise but every time this market dips I think there are buyers, at least in the short term.
NATGAS Video 30.07.20
Longer-term, we may be trying to form some type of bottom for the upcoming winter months, because there have been multiple bankruptcies in this field to bring down supply a bit, and there has also been a significant amount of heat that has driven up demand. That in and of itself could be reason enough to be bullish down the road, but right now I think we are simply in a consolidation phase. The $1.60 level extends down to the $1.50 level, forming a massive “floor in the market” from what I can see. Furthermore, if you look back several years, you can see that the $1.50 level has been crucial multiple times.
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