Natural Gas Price Forecast – Natural Gas Markets Fall Again

Natural gas markets have fallen again during the trading session on Friday, but at this point it must be said that the market had been far too ahead of itself for some time, so it does make sense that perhaps we needed to relax a bit. With that being the case, the 50 day EMA sits just below in that could attract a certain amount of buying. The $2.20 level is sitting just below there as well, and that could cause a lot of support also. In other words, I think that the selling is almost over, and I will use a daily candlestick in order to place my next trade. I will wait for a daily close to make that trade, but I am most certainly upward biased at the moment.

NATGAS Video 14.09.20

Even if we break down below the $2.20 level, then I start looking at the 200 day EMA which is at roughly $2.10 to get involved from the upside as well. I do not really have a scenario in which I want to short natural gas, not going into the cold months in the northern hemisphere. Remember, the front month contract being traded right now as October, and that is when people start to need to heat their homes again. Furthermore, if the US dollar does continue to lose a bit of strength, that could play into the hands of natural gas buyers as well. If we were to turn around a break down below the $2.00 level, I would consider the entire idea of a new uptrend busted.

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