Natural Gas Price Forecast – Natural Gas Markets Pull Back in Thin Volume

Natural gas markets fell during the trading session on Monday, reaching down towards the $2.50 level. You should keep in mind that it was also Labor Day though, and therefore liquidity would have been a bit suspicious to say the least. Ultimately, I think that this is a market that will continue to be very noisy, but bullish more than anything else. After all, natural gas markets have seen a massive move to the upside, and it does make sense that we would see a certain amount of bullishness come into play based upon dips that find support. I do like the idea of the cyclicality of the market going higher due to the fact that it is starting to focus on colder months, which of course brings up demand for natural gas in both the European Union and North America.

NATGAS Video 08.09.20

To the downside, I see the $2.40 level as being significant support, as there is a huge gap there, but furthermore I see support closer to the $2.20 level underneath which of course features the 50 day EMA and the most recent plunge higher. That being said, I think that it is only a matter of time before you can start picking up natural gas on lower levels, as the value will certainly be there. The 50 day EMA of course is something that people will pay attention to, so it is worth noticing any signs of a bounce. Underneath there, I believe that the $2.00 level is the absolute “floor” in the market. As long as we stay above there, we still have an opportunity to go higher through the cold months.

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