Natural Gas Price Forecast – Natural Gas Markets Pressuring ResistanceNatural gas did truly little on Friday, but we remained near the resistance at $1.80. That in itself is a sign the buyers are still looking to take control.
Natural gas markets have done extraordinarily little during the trading session on Friday, as America celebrated Independence Day weekend. Ultimately, the lack of liquidity did not change the overall tone of the week though, as we ended up forming a bullish flag. The bullish flag measures for a move to the 200 day EMA, which is currently at the $2 level. That of course is a nice large round number and will attract a certain amount of attention. However, we have to get above the $1.80 level before we can take off to that area, which also means we need to get above the 50 day EMA.
NATGAS Video 06.07.20
In the short term, I like the idea of buying small dips, because we are starting to see more demand for natural gas due to the hot temperatures in the United States and of course the series of bankruptcies that are currently going on. As the supply and demand issue has been a major problem for this market, anything that can help with the oversupply of natural gas should keep people interested.
Just below, we have the $1.50 level which of course is a major round figure but more importantly it is an area that has shown massive support on longer-term charts. In other words, it is an area where longer-term “buy-and-hold” traders have gotten involved in the past. When you look at the chart, you can even make an argument for a bit of a “double bottom” that has just formed, so that is another thing to pay attention to as well.
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