Natural Gas Price Forecast – Natural gas markets finding support during Tuesday session

Natural gas markets initially pulled back during the trading session on Tuesday, but then turned around of form a bit of a hammer like candle early in the day. The 50 day EMA is just above so it’s probably going to be resistance, but if we can break above there we could really start to move to the upside.

NATGAS Video 10.07.19

The main fundamental reason for natural gas going higher as of late is the fact that August is supposed to be rather hot in the United States, so therefore natural gas usage is expected to be rather robust. That being said, it’s a short-term phenomenon, because quite frankly he waves only last in terms of days or weeks, as opposed to wintertime when natural gas becomes much more expensive, that lasts three months. Ultimately, even though I see that the market is probably likely to rally a bit, at this point I think it’s only a matter of time until we see sellers jump back in and as the oversupply of natural gas will continue to be a longer-term problem. The market looks heavy at the $2.60 level as well, so I would be more than willing to sell any type of exhaustive candle in that area. However, if we were to break down below the hammer, then I think the market probably goes down to the $2.30 level, possibly even the $2.20 level after that.

Please let us know what you think in the comments below