Natural Gas Price Forecast – Natural Gas Markets Give Up Early Gains

Natural gas markets initially tried to rally during the trading session on Friday but gave back a significant amount of the gains as the $2.50 level continues to cause a significant amount of resistance. Nonetheless, the $2.40 level underneath is a massive support level based upon the previous gap, so at this point in time I think it is only prudent that you look at this as a potential break out, but that breakdown should only open up support down at the $2.20 level as a viable buying opportunity. Nonetheless, yet the keep in mind that the natural gas markets are rather then at times, and of course tend to be extraordinarily volatile.

NATGAS Video 07.09.20

The natural gas markets have been pushed around for various reasons, not the least of which has been a recent hurricane. Beyond that, we also have the colder temperatures coming towards the end of the year that will drive up demand as well. Beyond that, the market has also shown itself to be bullish due to the fact that there have been a lot of bankruptcies, and therefore the theory of course is that the supply will drop.

Ultimately, the 50 day EMA underneath at the $2.20 level should also offer significance support in its own right. The market should be likely to see more of a “buy on the dips” type of mentality, and therefore I think that as long as the situation remains the same as it has been, then it is likely that we will continue to go much higher. I believe at this point we are starting to look at the $3.00 level as a potential target.

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