Natural Gas Price Forecast – Natural Gas Markets Pull Back from 50 EMANatural gas markets initially tried to rally on Wednesday but struggled at the 50 day EMA again. It shows how difficult the trading conditions are.
Natural gas markets have tried to rally during the trading session on Wednesday as we continue to see a lot of volatility and commodities in general. The 50 day EMA has caused a bit of resistance, so that does make quite a bit of sense as it has been important more than once. That being the case I believe that the market probably goes looking towards the bottom of the candlestick for the Tuesday session, which is closer to the $1.70 level.
At this point, as long as we can stay above there, I think that the market turns around and attacks the 50 day EMA yet again. With that, I believe that we will continue to see a lot of choppiness in general. However, if we can overcome the $1.80 level then I think it allows the natural gas markets to go looking towards the highs again. Ultimately, I would anticipate that we get a rally based upon the idea of hundred temperatures in the United States and perhaps the “reflation trade.”
NATGAS Video 16.07.20
The $2.00 level above is probably going to continue to be crucial, and I think it also makes for a nice target due to the fact that the 200 day EMA sits there. In fact, I believe that is where we end up eventually, but the last couple of days have certainly settled down. As we get the inventory numbers that will have its effect, but as we also get more inventory taken off-line due to bankruptcies, that should in the long term help this market.
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