Natural Gas Price Forecast – Natural Gas Markets Cratered

Natural gas markets fell rather hard during the trading session on Tuesday as traders came back to work from the Labor Day holiday in the United States, meaning the volume picked back up in the futures markets. That being said, it looks like there was a lot of profit-taking. Ultimately though I think it is only a matter of time before we rally again. The $2.40 level underneath is massive support, as it was a significant gap previously. Even if we break down below there, it is likely that we go down towards the $2.20 level where the 50 day EMA currently is breaking through.

NATGAS Video 09.09.20

Regardless, I like the idea of buying dips as the natural gas markets are most decidedly bullish. After all, we have seen a lot of bankruptcies in the United States, and of course we are starting to focus on the winter months when it comes to demand. That of course will be a major influence on where we go next, so with that being the case I believe it is only a matter of time before buyers come back into pick up a bit of value. I am not necessarily suggesting that we are going to go straight up in the air, just that we should have a bit of an underlying pressure to the upside, especially if the US dollar continues to lose a bit of strength.

That is worth mentioning here, the US dollar rallied a bit during the trading session on Tuesday, so this of course will have had an influence on this commodity as well. Nonetheless, I am looking for a buying opportunity and will base it upon a supportive daily candlestick. I will keep you updated here at FX Empire.

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