Natural Gas Price Forecast – Natural Gas Markets Hover at Big Figure

Natural gas markets have gone back and forth during the trading session on Wednesday, as we have around the $2.40 level. This is obviously a big figure that will attract a lot of attention as this market tends to move in $0.10 increments. Quite frankly, I would love to see a pullback towards the $2.20 level before I bought again, because I do think that the $2.50 level will cause a lot of psychological as well as structural resistance. Markets have been rallying due to the fact that the US dollar has been falling, and during the day on Wednesday, we did see a little bit of US dollar recovery.

NATGAS Video 20.08.20

Furthermore, there are a lot of bankruptcies out there in this market, and therefore it will probably weigh upon the idea of the oversupplied condition. It has been exceedingly hot in the western part of the United States this year, driving up demand as well. Beyond that, we are trading the September front month contract, and therefore it is likely that we are starting to think about winter as well.

There are a lot of things lining up for a bullish run in natural gas, but at this point we are bit extended so I would prefer to find value on dips. For what it is worth, the 50 day EMA is getting ready to cross the 200 day EMA forming the “golden cross” that a lot of longer-term traders pay attention to. For myself, I believe that price dictates everything.

For a look at all of today’s economic events, check out our economic calendar.