Natural Gas Price Forecast – Natural Gas Markets Give Up at Resistance
Natural gas markets have rallied a bit during the trading session on Wednesday, reaching towards the $2.40 level. That is an area that has been resistance more than once, just as it has been supported. Because of this, I believe that it is an inflection point for the natural gas market, and if we can overcome that level, I think that we go looking towards the highs again. In the meantime, we have significant support underneath so paying attention to the 50 day EMA certainly will make a certain amount of sense. As it tends to be very significant for the trend of the market. Furthermore, the $2.20 level sits just below that indicator, an area where we have seen a lot of noise.
NATGAS Video 17.09.20
Looking at this chart, I still am bullish, but I recognize we may need to build a bit of a base in this area to start going higher. If that happens, then we will go looking towards the $2.75 level again, and then eventually the $3.00 level. As we head into the winter, I do expect demand pick up a bit, and as a result it would make quite a bit of sense that natural gas gains. However, the US dollar is strengthening and that is starting to cause a little bit of a problem, although I am the first person to point out that the natural gas markets are a little less sensitive the greenback strength than other commodities. That being said, I like the idea of buying these dips, but I would not jump “all in” right away.
For a look at all of today’s economic events, check out our economic calendar.