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Natural Gas Price Forecast – Natural Gas Markets Explode

By:
Christopher Lewis
Published: Oct 5, 2020, 15:35 UTC

Natural gas markets rallied rather significantly on Monday, breaking above the $2.60 level as we continue to see a lot of volatility.

Natural Gas

Natural gas markets have shot straight up in the trading session on Monday, breaking above the $2.60 level. By doing so, it looks as if the market is likely to continue using the 50 day EMA as dynamic support, and I do believe that it is only a matter of time before we go looking towards the $2.90, possibly even the $3.00 level above. That level of course is a very psychologically important signal and will attract a lot of attention.

NATGAS Video 06.10.20

Because of this, I anticipate that there will be the occasional pullback that we can take advantage of, as this time of year is rather bullish for natural gas in general. Because of this, I believe it is only a matter of time before market participants pick up value on dips, especially near the $2.40 level. The pullbacks should be thought of as potential buying opportunities and what looks to be a bullish market, so therefore you have to be resilient and pay attention to this market on short-term charts as it is probably the best way to find a nice entry.

To the downside, it is hard to imagine that we would break down below the 200 day EMA which is closer to the $2.20 level, just as it is going to take a significant amount of momentum to break above the $3.00 level. Looking at this chart, the candlestick is of course very bullish and long, so it does suggest that there is plenty of buying pressure underneath. With all of this, I like the idea of going long and not interested in shorting anytime soon.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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