Natural Gas Price Forecast – Natural gas markets drift lower

Natural gas markets have broken down during the trading session on Wednesday, reaching below the $2.50 level. That being said, there is a significant amount of support underneath down below at the 50 day EMA, which is closer to the $2.40 level. At this point, it’s likely that buyers will show up sooner rather than later considering that this has been a significant bounce lately, and at this point it looks as if we are trying to correct the downtrend and then try to get into the bullish run for the winter as demand will pick up in the United States and Europe for natural gas to heat homes.

NATGAS Video 26.09.19

All things being said, this is a market that continues to be very choppy, as will any market that has been changing to own as of late. At this point, the market has previously been forming a bullish flag, and that flag measures for a move to the $3.00 level. At this point, that is my target but I also recognize that this market will bounce around quite a bit.

Natural gas is longer-term structurally negative, but 2 to 3 months every year it does rally and we are approaching that time of year right now. With that being the case, the fact that it does look like we are trying to bounce a bit later in the day, I suspect that natural gas continues to offer value on the short-term pullbacks. I have no interest in selling, at least not until the beginning of January.

Please let us know what you think in the comments below