Natural Gas Price Forecast – Natural Gas Markets Pull Back

Natural gas markets fell during the trading session on Tuesday, showing signs of exhaustion as the market has dropped below the 50 day EMA yet again. However, there is a significant gap just below that offers plenty of support that extends all the way down to the $1.70 level. Between here and there, I would fully anticipate seeing some type of bounce, as the technical analysis suggests that this gap should offer plenty of support. Because of this, I will be waiting on the sidelines for an opportunity to start taking advantage of value.

NATGAS Video 13.05.20

Looking at this chart, we are in the midst of a serious battle, perhaps trying to change the overall trend. If there are enough bankruptcies in the United States that should continue to propel this market to the upside. The $1.60 level underneath is massive support, so as long as we can stay above there, then there is always a chance that the market will turn around to show signs of life. If we can turn around and break above the 200 day EMA which is currently trading at the $2.11 level, that would be an extraordinarily bullish sign. In the meantime, I think that we are going to continue to bounce back and forth but we are forming what could be suggested as a “broadening pattern”, which is typically found at the end of a trend. Look for value, and then take advantage of it as it appears. This will be easy, but it certainly looks as if we are trying to turn things around from a longer-term standpoint.