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Natural Gas Price Forecast – Natural gas markets plummet after dovish inventory figure

By:
Christopher Lewis
Updated: Sep 26, 2019, 17:04 UTC

Natural gas markets fell rather hard during the trading session after initially trying to rally on Thursday, as the Natural Gas Storage figures in the United States came out at 102 billion, as opposed to the expected 90 billion.

Natural gas daily chart, September 27, 2019

Natural gas markets have initially tried to rally during the trading session on Thursday but found enough resistance to turn around and start dropping. This was perhaps in preparation for the inventory figure, which came out quite negatively, as 102 billion was the build it, as opposed to an expected 90 billion. This shows that there is still a lot of natural gas out there, and we haven’t quite started to burn off the supply. That being said though, this is the time of year where we typically will start, as traders start to prepare for the winter months in the United States, European Union, and the rest of the Northern Hemisphere.

NATGAS Video 27.09.19

That being said, the technical analysis is quite interesting as the market slammed into the 50 day EMA, at the $2.40 level which is the bottom of massive support. The question now is whether or not we can stay above here? If we do, then that’s a sign that the cyclicality and the seasonal momentum is probably still with the buyers, but it should also be noted that all kinds of choppiness and geopolitical concerns can come into the forefront when it comes to natural gas as well. With all of that, I anticipate that we will get a bit of a bounce, and if we can cross back above the $2.50 level that’s probably a sign that the buyers are going to take over again. Alternately, if we were to break down below the 50 day EMA then we will probably “reset” somewhere closer to the $2.25 handle.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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