Natural Gas Price Forecast – Natural gas markets pull backNatural gas markets have pulled back a bit during the trading session on Tuesday, as we have seen the market gravitate around the 200 day EMA. Ultimately though, not much has changed over the last 24 hours.
Natural gas markets pulled back a bit during the trading session on Tuesday, to perhaps solidify the gap that had started out the week. The natural gas markets look very bullish, and the 200 day EMA underneath should offer quite a bit of support. The $2.50 level underneath should be important as well, as it is the bottom of the recent consolidation and of course a large, round, psychologically significant figure. With that, I think there is an entire range of support just waiting to involve itself into the marketplace.
NATGAS Video 18.09.19
When you look at the chart it doesn’t take much to imagine a bullish flag that has just got broken above, so it’s likely we could reach to the $3.00 level based upon the measured move. With all that, the market looks very likely to cause issues for traders as we start the “Winter pop higher”, and therefore it looks likely that the market should continue to find higher pricing, but it is going to be very noisy and distracted in the short term. Short-term pullbacks should be buying opportunities, and therefore it’s likely that traders will get involved. It doesn’t necessarily mean that is going to be very easy to go higher, and at this point it’s likely that the market will be extraordinarily volatile at times, and well supported. This is a short-term move, but sometime in January, the market typically will break down drastically as traders start to worry about warmer temperatures again. Going forward, it’s likely that the market will continue higher.
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