Natural Gas Price Forecast – Natural Gas Markets Finding SupportNatural 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.
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.
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