Natural Gas Price Forecast – Natural Gas Markets Continue to Test Trendline

Natural gas markets have been a little bit soft during the trading session on Monday, as we continue to see a lot of question marks out there when it comes to the global economy and whether or not there is going to be demand picking up. Having said that, the market still is well within the tolerance of forming a “rounded bottom”, as the market is trying to find a longer-term bottom. Ultimately, what we should pay attention to is price and not necessarily just the fundamentals.

NATGAS Video 16.06.20

One of the biggest reasons that we are seeing a bit of negativity is that risk appetite in general has been selling off during the day as people are worried about a pickup in the amount of coronavirus cases around the world. Ultimately, if we break down below the uptrend line, then I suspect we will probably see plenty of support near the $1.60 level as well. Having said that, I do believe that we will find buyers based upon value, although the question of demand still is a major issue.

Beyond that, the market has to worry about whether or not the supply gets chewed through, and I think this is a long-term scenario. I do like the idea of buying but I also recognize that it is going to be very noisy up to the 50 day EMA, so keep in mind that this could be a very difficult to trade, so keep your position size relatively small but that is probably decent advice for just about any market you can trade right now.

For a look at all of today’s economic events, check out our economic calendar.