Natural Gas Price Forecast – Natural Gas Markets Fill Gap

Natural gas markets fell again during the trading session on Friday, as traders again to look towards filling the gap on the charts. Ultimately, the 50 day EMA sits right around the $2.81 level, which is basically where the gap is. That being said, the market is likely to see a little bit of support here, and it does make sense that we felt here as the hurricane does not look as if it is going to affect production. For that matter, we are even sure whether or not the tropical storm in the Gulf of Mexico is going to turn into a hurricane, but it is starting to look as such.

NATGAS Video 09.11.20

Once we fill the gap, then there is structural support just waiting to happen. Ultimately, the market is likely to find buyers in this general vicinity, as we have filled the gap and now there should be plenty of interest in trying to go long of natural gas in that area. At this point in time, then I think we could go looking towards the highs again, but we have short-term warm weather in the United States, and that of course has driven the price down. That is the catch with natural gas, tends to move on the latest weather reports, so it is likely that we will continue to see a lot of erratic behavior but as we are in the coldest months of the year, at least as far as trading contracts are concerned, and therefore demand should be higher.

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