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

Natural gas markets have initially tried to rally during the trading session on Tuesday but gave back the gains to crash towards the $2.50 level. At this point, the market is very likely to find buyers underneath, especially near the gap at the $2.40 level. That being said, I like the idea of buying short-term pullbacks, and therefore will have to be very patient in order to pick up natural gas contracts. Underneath there, the $2.20 level is massive support that extends down towards the 50 day EMA. That of course is an area that has been a lot of consolidation recently, so it should now show itself to be rather supportive.

NATGAS Video 02.09.20

The candlestick from the Monday session was a hammer, so breaking down below there could bring in significant pressure to the downside, but at that point I would not be a seller. Quite frankly, I think there are plenty of reasons out there for natural gas to continue going higher, not the least of course is the fact that the US dollar is getting hammered. As long as that continues to be the case, it is likely that we will see commodities in general do quite well. Ultimately, I do think that this is a market that will eventually find a reason to go higher, not the least of which is the fact that we are starting to look at cold months as being the driver of the market next. Ultimately, I think that the “buy on the dips” mentality should continue to be the case. A little bit of patience could go long way.

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