Natural Gas Price Forecast – Natural Gas Markets Get Hammered Again

Natural gas markets have fallen a bit during the trading session on Tuesday, reaching down towards the $2.60 level. That is an area that is the top of a major gap, so it does make sense that we would see support there, but we have tested this area multiple times. Because of this, it would not be overly surprising to see the market reach a bit lower, perhaps down to the 50 day EMA. That is at $2.42, which is just above the top of the gap. All things being equal, I do think that we go a little bit lower, but I do like the idea of buying dips in the natural gas markets.

NATGAS Video 30.09.20

Looking at the chart, I do believe that it is only a matter of time before buyers will come back in, and therefore I like the idea of picking up value when we get that opportunity, and it certainly shows an opportunity for longer-term minded traders as the temperatures are starting to drop in the northern hemisphere. Ultimately, the market is likely to see value hunting given enough time, and therefore I have no interest in shorting. In fact, what I take particular interest in is the fact that the natural gas markets have rallied overall, even as the US dollar strengthened. As the US dollar fell, it has seemingly had almost no effect on this commodity as well. With that being the case, I believe that the market is one that you should be paying attention to on a supportive daily candlestick, but obviously we do not have that quite yet.

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