Natural Gas Price Forecast – Natural Gas Markets Hit Major LevelNatural gas markets fell a bit to kick off the trading session on Wednesday but found enough support at the $1.60 level to turn around yet again.
Natural gas markets have bounced a bit during the trading session on Wednesday, reaching towards the $1.60 level before finding buyers and then bouncing. Ultimately, think there is a significant amount of support underneath the $1.60 level reaching down to the $1.50 level, so therefore I think it is likely that we are going to try to find a bottom in the short term area. I think we could bounce back towards the 50 day EMA, and I still believe that we are trying to form some type of bottoming pattern, perhaps something to the effect of a “rounded bottom.”
NATGAS Video 18.06.20
If we do break down below the $1.50 level, then the market is likely to unwind quite drastically. Ultimately, this is a market that I think continues to find plenty of reasons to think that we may bounce a bit, the economy opening up of course would be a big sign. Furthermore, the market also has the look at the idea of several bankruptcies coming down the road so that should drive down a bit of the supply.
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That being said, it does not mean that it is necessarily going to be an easy ride higher, just that we are going to see a bit of a bounce more than likely. I do anticipate that there will be a lot of noisy trading, but I think at this point if you are trying to sell natural gas you are chasing the trade. That is without a doubt one of the easiest ways to lose money.
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