Natural Gas Price Forecast – Natural Gas Markets Get Hit Hard

Natural gas markets are behaving in a very volatile manner again, which is pretty much status quo for this market most of the time. The market initially tried to recover the gap and then continue going higher, it did so with a significant amount of success. However, slowing export demand is starting to weigh upon the US natural gas industry, as the rest the world’s shutters from the recent global downturn. Nonetheless, things are looking up in several places, so it is only a matter of time before natural gas becomes cheap enough again for people to get involved.

NATGAS Video 10.09.20

If you have been following me here at FX Empire, you know that I have said that the market was a little overdone and that a pullback would be welcome news. At this point in time, I think that the 50 day EMA sitting just above the $2.20 level makes for a very interesting target when it comes to the idea of buying this contract again. I have no interest in shorting natural gas, although I am almost positive it will fall a little further.

This is because the recent momentum certainly tells us that there are people out there willing to buy it, and then of course the seasonal effect of colder temperatures in the United States and Europe will come into play to move this market. All things being equal, I think that the market is still going to try to get to the $3.00 level sometime over the next couple of months, so I am a buyer of dips. I will wait for a daily candlestick to confirm my trade.

For a look at all of today’s economic events, check out our economic calendar.