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