Natural Gas Price Forecast – Natural Gas Markets Gap Higher to Kick Off WeekNatural gas markets gapped higher to kick off the trading session on Monday, breaking above the inverted hammer from the Friday session.
Natural gas markets have gapped higher to kick off the trading session on Monday as the market had reached the bottom of the overall range. Having said that, the market is struggling at the 50 day EMA, and therefore it is likely that the market could go looking towards the $2.00 level, possibly even the 200 day EMA above. This being the case, one thing you should pay attention to is that we have broken above the top of an inverted hammer, which is a very bullish sign. Beyond that, we have also seen the market make a “higher low”, which is a relatively strong sign that perhaps things are changing anyway.
NATGAS Video 19.05.20
With that being the case, I do believe that we are trying to form a longer-term bottom, lease for the next few months. That does not mean that is going to be easy but ultimately this is a market that I believe will continue to chop around in general, showing signs of volatility from dusk till Dawn. Ultimately though, I do like the idea of buying short-term pullbacks, but I am not foolish enough to simply “buy-and-hold.” This is a market that has a lot of work to do, but as we start to look towards the idea of the economy reopening and of course the massive amounts of bankruptcies that could come into play when it comes to this sector, it could continue to bring in a little bit of positivity in a market that so desperately needs it.