Natural Gas Price Forecast – Natural gas markets continue to find support

Natural gas markets gapped a little bit lower during the trading session on Monday, fell a bit, but then stabilized. This tells me that there is still support underneath, extending down as low as the $2.20 level.
Christopher Lewis
Natural gas daily chart, October 08, 2019

Natural gas markets have dropped a bit during the trading session on Monday, as we are perhaps clawing back some of the impulsive move from Friday. That being said though, the range is rather tight and the hammer shaped candle stick from Friday only reinforces the idea of buyers underneath. The 50 day EMA is just above, and if we can break above there it’s likely that the market will continue to go towards the $2.50 level. That being said, I think the 200 day EMA just above there will cause some resistance but we are at the precipice of the winter rush into this market as temperatures drop in the United States and the European Union. As demand picks up, then obviously the price of natural gas will.

NATGAS Video 08.10.19

Typically, this runs until the second week of January or so and can be quite brutal. It is under this theme that I am looking at the charts and suggesting that perhaps value hunters are starting to come back in. Quite frankly, I don’t see the likelihood of a selling opportunity at this point, because quite frankly it’s the wrong time of year, and of course we are at extreme lows. I think at this point you are more likely to be rewarded for buying dips that offer value, but recognize it is going to be very noisy on the way back up. I don’t have any scenarios in which a willing to sell down at this level, and therefore I’m simply looking for those buying opportunities as they occur on short-term charts.

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