Natural Gas Price Forecast – Natural Gas Markets Find SupportNatural gas markets went back and forth on Thursday, as we are sitting above a major gap. At this point, expect a lot more volatility.
Natural gas markets went back and forth during the trading session on Thursday, as we have a massive amount of support underneath at the $2.40 level. Ultimately, this is a market that I think will continue to see a lot of volatility, but I think more importantly has a lot more in the way of upward pressure. We are starting to trade colder months, and that means more demand. Furthermore, the US dollar has been on its back foot for a while so that also helps commodities in general.
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If that is going to continue to be the case, then it is likely that the overall proclivity of the market still will be to the upside, so therefore I like the idea of buying dips, especially near the $2.40 level, but even if we break down below there I think the 50 day EMA at the $2.20 level offers a lot of potential support as well.
NATGAS Video 04.09.20
Looking at this chart, I think it is only a matter of time before we get an opportunity to go long, and I believe that we are going to go looking towards the $2.80 level. This has been a long time coming, as we have formed a major rounding bottom on longer-term charts. With that being said, I like the idea of simply waiting for a little bit of value and taking advantage of it. I think that the next couple of months we will probably continue to see natural gas grind its way much higher. The selling of natural gas is not much of a thought for me right now.
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