Natural Gas Price Forecast – Natural gas markets continue to press resistanceNatural gas markets rallied a bit during the trading session on Friday, after initially dropping down towards the $2.40 level. At this point, the market looks as if it is going to try to break above the $2.50 level which would be a major accomplishment.
It appears that natural gas markets continue to get a bit of a boost from the hotter temperatures in the United States, and perhaps we are starting to build that basing pattern for the yearly move. At this point though, the 200 day EMA above is going to cause a lot of resistance, so I don’t know that we are quite ready to break out yet, but I am keeping an open mind.
NATGAS Video 09.09.19
More likely, I suspect that we will have to pull back in order to build up enough momentum to go into the wintertime contracts, as that is without a doubt the strongest time of year for natural gas historically. The 50 day EMA underneath which is painted in red should offer dynamic support, and it now appears that natural gas is making a huge attempt to turn things around finally. The trend line has been broken to the upside, and now the market has all but shown that it’s ready to go higher in a larger timeframe since. That being said though, you should be waiting for pullbacks show signs of support. The risk to reward ratio is astronomical, because once you catch the move higher it’s likely that you can hang onto that trade for about two months. Ultimately, look for value and natural gas as it appears we are certainly done with selling, at least for the season. This move will probably be somewhat parabolic, as it typically is, but that tends to be closer towards November and December.