Natural Gas Price Forecast – Natural Gas Markets Continue To Float

Natural gas markets gapped a bit during the trading session on Tuesday, but then broke down significantly. However, the market turned around to form a bit of a supportive looking candle so at this point it’s a bit difficult to get overly excited one way or the other. We are at extreme lows, so there is very likely going to be a chance that we bounce a bit. If we bounce from here, then the $2.20 level being broken to the upside would be a buying opportunity for short-term traders, perhaps sending the market looking towards the 50 day EMA, which is closer to the $2.35 level.

NATGAS Video 08.01.20

To the downside, the market is most certainly supported all the way down to the $2.00 level but it’s a general area that is going to offer support, at best. In other words, this is going to be very messy trading, but I think it’s only a matter of time before value hunters will probably come back in. This doesn’t necessarily mean that I have any interest in buying the market for anything more than a quick move, and at this point you will need to be very cautious about your position size. Ultimately, the easiest trade is to simply wait for the market to rally so you can start selling on signs of exhaustion. That’s worked all winter, and even with a spike in price that probably is still going to end up being the trade. With this, keep an eye on the 50 day EMA above.

Please let us know what you think in the comments below