Natural Gas Price Forecast – Natural Gas Markets Drop On Monday

Natural gas markets fell during the trading session on Monday, reaching down towards the $2.20 level before bouncing slightly. By doing so, the market looks likely to continue to go back and forth in this area, perhaps showing signs of exhaustion overall. At this point, this is a market that looks as if it is trying to build a springboard higher, as we approach the colder months going forward. I think that it’s only a matter of time before we do break out to the upside but obviously, we are quite ready to do so right now. With that being the case, then we need to play the market in front of us.

NATGAS Video 22.10.19

It looks as if the $2.20 level should be support, and a bit of a bounce here should offer a nice buying opportunity to reach towards the $2.35 level. The 50-day EMA of course will cause quite a bit of resistance and attention, so that should be thought of as well. Ultimately, this market goes back and forth and eventually finds reasons to bounce between these two levels. However, eventually if we can clear the $2.40 level, then the market finds buyers to come in and start going long again. This will be exacerbated by cold-weather forecasts coming out of the United States, and as a result be paying attention to those announcements as it will signal that demand is going to be picking up again. If the market does break down below the $2.20 level, I see a lot of support underneath down to the $2.00 level.

Please let us know what you think in the comments below