Natural Gas Price Forecast – Natural Gas Markets Find Buyers

Natural gas markets went back and forth during the trading session on Friday, initially dropping down towards the $1.70 level before turning around to form a bit of a hammer. I think we are going to continue to go sideways in this general vicinity between the $1.70 level and the $1.80 level. The 50 day EMA is currently at the $1.77 level, and it does seem to be flattening out. This is a good sign that we may continue to consolidate overall.

NATGAS Video 20.07.20

Looking at the chart, I think we are trying to form some type of range, perhaps between the $1.50 level on the bottom and the $2.00 level on the top. This is a market that is also starting to see a whole lot of buying on dips, perhaps due to the bankruptcies in the United States or possibly even the fact that we have seen more demand due to higher temperatures in America.

At this point in time, the market is historically cheap so a little bit of a rally would be expected. If we can break above the 200 day EMA and the $2.00 level, we could get a much more significant move. That is not my base case scenario though, I think we are simply trying to grind to the upside in the short term, eventually to make a move on the $2.00 level. At this point, I do not have interest in shorting the market, but I certainly recognize that we could pull back in the short term to go to lower pricing.

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