Natural Gas Price Forecast – Natural Gas Markets Have Shown Strength Again

Natural gas markets have fallen a bit during the trading session on Wednesday, reaching down towards the $1.60 level. This is an area that begins significant support down to the $1.50 level, an area that is crucial for the longer-term charts. Ultimately, this is an area that I think will continue to attract a lot of attention, as we have seen multiple reversals at this level. The fact that we ended up forming a bit of a hammer the trading session also suggests that we could go higher, perhaps reaching towards the 50 day EMA above, currently sitting at the $1.76 level.

NATGAS Video 23.07.20

If we can break above the $1.87 level, it is likely that the market could go looking towards the 200 day EMA, closer to the $1.97 level. Overall, I think that this market is simply bouncing around between the $1.50 level and the $2.00 level. I think at this point the market is likely to continue to be range bound longer-term, as we see the market form a bit of a base.

After all, the market is looking at hotter temperatures in the United States which also will drive up the demand, but at the same time we also have the massive amount of bankruptcies out there that will continue to help this market out. However, if the market does break out to the upside it is very likely that more drillers will come back and flood the markets again. In the meantime, you have to look at this as a market that you can go back and forth in and out of.

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