Natural Gas Price Forecast – Natural Gas Markets Find Buyers on FridayNatural gas markets initially dipped a below the 50 day EMA on Friday but turned around. This is a market that looks like it is trying to continue going higher.
Natural gas markets have initially pulled back a bit during the trading session on Friday, dipping below the 50 day EMA. By breaking down below there and turning around, it shows a certain amount of resiliency in this market. I think it is only a matter of time before we continue to see buyers jump in and push towards the $1.90 level again. Above there, we also have the $2.00 level, an area that has a certain amount of psychological importance built into it. Beyond that, we also have the 200 day EMA sitting at the $2.00 level so I think it is only a matter of time before that would come into play to cause issues.
NATGAS Video 13.07.20
To the downside I see a lot of support at various levels. The 1.50 level has essentially been a floor in the market for quite some time, well before the last couple of months. It is a long-term inflection point, and those typically stick with the market for some time. Pullbacks at this point should be buying opportunities, with the $1.70 level offering a significant amount of support as well. I think we are going to grind higher due to higher temperatures in the United States and a whole slew of bankruptcies in this industry, which should in theory drive down supply, allowing for the market to rise as far as price is concerned. This does not mean that is going to be easy, but in the short term it looks like we are trying to get to the $2.00 level.
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