Natural Gas Price Forecast – Natural Gas Markets Fill Gap

Natural gas markets initially tried to rally during the trading session on Monday, as we have seen a bit of bullish pressure early, but then the market sank. The natural gas markets have fallen towards the 50 day EMA, which of course is a significant technical indicator. Furthermore, we have filled a gap to reach down towards the $2.80 level, which is something that I have been calling for days now. Now that we have done this, value hunters will start to come into the marketplace and try to take advantage of “cheap natural gas.”

NATGAS Video 10.11.20

When you look at the weather for the United States over the next week or so, it does continue to be a bit warm but keep in mind that this is the time year where colder temperatures are more the norm than not. Because of this, it is more than likely only a matter of time before we see some reason to start buying again so I will be waiting for a daily candlestick that looks bullish, or a break above the top of the candlestick for the trading session on Monday which makes that an “inverted hammer.” This of course is a very bullish move, and it could open up a move towards the $3.20 level of the next week or two.

That being said, the market will continue to be noisy, but this time a year is typically bullish for natural gas, so with that in mind it is difficult to start selling it. That being said, I believe it is only a matter of time before we are buyers again.

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