Natural Gas Price Forecast – Natural Gas Markets Get Hit HardNatural gas markets got crushed on Monday as we have seen temperatures in the U.S. drop a bit. There is support underneath and I am looking to buy.
Natural gas markets have broken down significantly during the trading session on Monday to reach down towards the $1.60 level. There is a massive amount of support between the $1.60 level and the $1.50 level, so I think at the first signs of a bounce there will be plenty of buyers the jump in and try to push this market to the upside. The $1.50 level has been extraordinarily supportive over the longer term, and therefore I think it continues to be an area where the buyers will step in.
NATGAS Video 21.07.20
As we start to see the market get closer to that area, there will be a lot of people looking to get involved. The 50 day EMA is near the $1.76 area, and I think that will be the first thing that we go looking towards. If we can break above there, then the market is likely to go above the $1.80 level. Above there, the market is likely to go looking towards the $2.00 level, and therefore I think it is only likely that there would be a lot of sellers in that area due to the 200 day EMA.
As I said a few sessions ago, I believe that we are going to continue to go back and forth between the $1.50 level and the $2.00 level. As we are closer to the bottom, it is likely that we are looking for the value hunters to get in and start picking this backup. Furthermore, there are a lot of bankruptcies out there hitting the industry so supply should continue to slow down over the longer term.
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