Natural Gas Price Forecast – Natural Gas Markets Grinding Higher

Natural gas markets have rallied a bit during the trading session on Monday, reaching towards the $1.70 level. That is an area that of course will attract a certain amount of attention but when you look at the longer-term chart, you can see that the $1.80 level is probably much more important. Ultimately, this is a market that I think will then have plenty of traders getting involved and perhaps pushing lower. At this point, the 50 day EMA being broken to the upside would be a massive bullish signal, and something that I would anticipate seeing eventually. I do not however, expect to see this in the first attempt.

NATGAS Video 23.06.20

In the short term, I think buying short-term dips makes quite a bit of sense, as the $1.60 level is the beginning of massive support that extends down to the $1.50 level. Breaking down below that area would be extraordinarily negative but I do not see that happening based upon historical charts in the fact that we are starting to see several companies out on the Permian basin and other places run into serious trouble, thereby more than likely dropping down to the supply quite drastically. Economies around the world reopening also will bring in a little bit more demand, although it is probably going to be tepid at best. To the upside, I believe that the “ceiling”, at least at the moment will be the $2 level. The 200 day EMA sits just above that level, and therefore could offer a significant amount of resistance as well.

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