Natural Gas Price Forecast – Natural Gas Markets Finding Support

Natural gas markets have pulled back slightly during the trading session on Monday but found enough support at the $2.20 level to bounce yet again. At this point, it looks as if that area is going to continue to be important.
Christopher Lewis
Natural Gas Price Forecast - Natural Gas Markets Finding Support

Natural gas markets pulled back a bit during the trading session on Monday, reaching towards the $2.20 level before bouncing again. By doing so, it looks as if the market is starting to show signs of life again and with this hammer like candlestick forming it suggests that the market will continue to find value hunters in this area. The $2.20 level extends all the way down to the $2.00 level as a support barrier, and quite frankly we are at extraordinarily low levels, so it is difficult to start shorting. Granted, the natural gas markets are struggling due to a major oversupply of the commodity, but at the end of the day there are only so many people out there left to sell.

NATGAS Video 31.12.19

Rallies at this point probably are completely trusted, but I think that if we break higher from here, we could go reaching towards the 50 day EMA above, which is an area that will attract a lot of attention. The $2.40 level will continue to be difficult to overcome, but if we do then the 200 day EMA which is closer to the $2.50 level as well. At this point, there are plenty of reasons to think that short-term rallies will be sold at the first sign of exhaustion, but I do think that there will still be a spike in prices sometime this winter. Quite frankly, if it doesn’t happen, natural gas markets are going to be a complete mess he disaster for the rest of 2020. Short-term buying opportunities may appear, but I would be relatively quick to take profits.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.