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Natural Gas Price Forecast – Natural gas markets grind sideways

The natural gas markets went sideways during the day on Friday, and it now looks like we are trying to consolidate here. That being said though, there are couple of levels worth paying attention to.
Christopher Lewis
Natural gas daily chart, September 16, 2019

Natural gas markets did very little during the trading session on Friday, as we continue to hover just above the $2.50 level. The 200 day EMA above at the $2.60 level will continue to offer resistance, but the $2.50 level should offer support. Below there, the 50 day EMA is all the way down towards the $2.33 level. Any type of bounce from there could be a nice buying opportunity and therefore I think it’s likely that we continue to go higher from there. Ultimately though, we are getting close to the end of the hot season, and therefore demand for crude oil will start to pick up in places like the United States and Europe.

NATGAS Video 16.09.19

All things being equal I think that it’s only a matter of time before buyers step in and pick this market back up towards the “Winter pop” that almost always happens. While I do think that the market is ready to break down from here, it’s very likely that we will find plenty of buyers underneath. At this point I’m looking for value and I think it will present itself over the next week or so. Ultimately though, if we break above the top of the shooting star from the Tuesday session, then momentum more than likely comes back into the market and we just simply shoot higher. You could make an argument for a little bit of a bullish flag here, but quite frankly I believe it’s much easier to buy this contract on a dip. Either way, selling is all but done for a couple of months.

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