Natural Gas Price Forecast – Natural Gas Markets Pull BackNatural gas markets fell slightly during the early hours on Wednesday as we may have gotten a bit stretched. But I think ultimately will have buyers.
Natural gas markets have pulled back a bit during the trading session on Wednesday, to reach down towards the $2.10 level early in New York trading. However, this is a market that I still believe has a lot of pressure underneath and should eventually go higher. With that in mind, I have a particular interest in paying attention to the $2.00 level underneath where the 200 day EMA currently sits. I think that is an area that could cause a lot of support, but it may get a bit noisy in that general vicinity.
NATGAS Video 13.08.20
Underneath there, the 50 day EMA comes into play as well, near the $1.90 level. All things being equal, the market is likely to see plenty of buyers between those two moving averages, so having said that I am looking towards the daily candlestick’s in order to place a trade. Looking for some type of value to get involved is without a doubt the best way to play this market, because it has certainly shown itself to be explosive to the upside after this most recent move.
That being said, with the bankruptcies out there and of course the falling US dollar, commodities in general are rising so I think natural gas is getting a bit of a boost due to that as well. After we get through the wave of bankruptcies, it will be interesting to see whether or not supply dwindles enough to drive the price of this winter. It looks very likely that this will be very choppy to say the least, but I still favor buying dips.
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