Natural Gas Price Forecast – Natural Gas Markets Have Yet Another Bullish Day

Natural gas markets have had another bullish trading session on Tuesday, as we continue to look towards the $2.50 level. Ultimately, I think this is a market that has clearly changed its longer-term trend, much like some of the major currency pairs that I follow here at FX Empire, such as the EUR/USD pair, GBP/USD pair, and so on. The reason I bring this up is that the main common denominator and all of those markets is the fact that it is the US dollar losing strength. The US dollar losing strength does drive commodities higher in and of itself, although it is not as big of an effect typically over here, because natural gas is so highly oversupplied.

NATGAS Video 19.08.20

Looking at the situation natural gas, it makes quite a bit of sense that the bankruptcies in this sector will drive the price out. Furthermore, we have a massive heat wave in the American West that has been driving prices higher. The question then becomes whether or not fracking start backup due to these higher prices, something that eventually does come to fruition.

Having said that, the front contract is September and we are very close to looking at trading winter months, which is typically a very bullish time a year anyway. With this, I like the idea of buying pullbacks in the natural gas markets as the $2.25 level looks to be massive support, and most certainly the $2.00 level will be. If we can break above the $2.50 level, then we will go looking towards the $2.60 level next. I have no interest in shorting this commodity anymore.

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