Natural Gas Price Forecast – Natural Gas Markets Pull BackNatural gas markets pulled back a bit during the trading session on Wednesday, breaking below the $2.00 level. That is a large, round, psychologically significant figure that traders will pay quite a bit of attention to.
Natural gas markets have pulled back a bit during the trading session on Wednesday, to break down below the 2.00$ dollars level again. At this point, the market is likely to see a lot of noise, as the market is likely to struggle with the idea of going higher considering that the downtrend has been so strong. However, we are starting to see producers in the United States talk about cutting back. If they do, then it is going to start to work against the inventory, at least that is the theory.
NATGAS Video 07.05.20
To the downside, we could go as low as $1.70, as it is a gap that has yet to be filled completely. Ultimately though, I do believe that the market has changed its attitude in general, so even if we pull all the way back down to that area, it is likely that buyers will return given enough time. The 50 day EMA sits below at the $1.86 level, so that could be where we are going in the short term to find a certain amount of buying pressure. If we break down below there then the 1.80 level would be the target, followed by the previously mentioned $1.70 level to fill that gap.
On the other hand, if we break above the 200 day EMA, which of course has caused so much in the way of resistance on Tuesday, it would obviously be a very bullish sign and should send natural gas much higher.