Natural Gas Price Forecast – Natural gas markets finally run out of steam

Natural gas markets got a bit sluggish during the trading session on on Thursday, as we had reached towards the $2.50 level. That of course is an area that will attract a certain amount of attention, as it is a large, round, psychologically significant figure. Just above that level, we also have the 200 day EMA which causes a lot of attention as well.

NATGAS Video 06.09.19

To the downside, we have the 50 day EMA which could now offer support but it certainly looks as if we are going to get a bit of a pullback in the short term. Natural gas is trying to form its base for the winter, and this could be the first serious attempt to rally. If we pull back from here it’s likely that we will find plenty of support near the 50 day EMA. I do think that we have at least one more leg lower, but it does appear that we are starting to turn things around again, as we head towards the winter pop that we almost always see in this market. As temperatures plummet, natural gas markets will heat up. The current contract is the October contract, so a couple of weeks from now we will be trading November, which of course is much more of a high demand season for this commodity. All things being equal, short-term sellers will probably be competing with long-term buyers underneath.

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