Natural Gas Price Forecast – Natural Gas Markets Finally Bounce

Natural gas markets rallied a bit during the trading session on Monday, reaching towards the $2.40 level. That is an area that was previously defined by the gap about a month ago, and therefore people will be paying attention to it. Furthermore, Friday had seen the market reach down towards the 50 day EMA, which of course is a technical indicator that a lot of people pay attention to. At this point, if the market breaks above the $2.47 level, then I think it goes looking towards the $2.60 level. Having said that, short-term pullback should continue to offer buying opportunities as well, due to the longer-term demand for colder temperatures coming down the road.

NATGAS Video 15.09.20

If the US dollar search the strength in, it could have a bit of an effect on this market and bring it back down as well, but longer-term if the US dollar weakens, that can help natural gas, although not always in such drastic ways as we see in other commodity markets. To the upside, I believe that the $2.60 level will offer some resistance, but I still think that we will eventually try to sneak our way towards the $3.00 level over the longer term. Short-term dips should be thought of as buying opportunities keep your position size reasonable as natural gas can be very volatile and can move rather rapidly. The candlestick is relatively bullish looking as well, so that does not hurt the argument for up trending moves either. Given enough time, I do think that we reach higher.

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