Natural Gas Price Forecast – Natural Gas Markets Pull Back Towards Trendline

Natural gas markets initially tried to rally during the trading session on Tuesday but gave back some of the gains in order to show signs of choppiness still. The 50 day EMA above is going to continue to be a bit of a magnet for price, and of course resistance. Having said that, there is also an uptrend line that is coming into play and so far, has held. If we can break above the 50 day EMA, then it is likely that the market probably goes looking towards the $2.00 level, which of course is a large, round, psychologically significant figure and will attract a lot of attention. Ultimately, I think that the market then has to deal with the 200 day EMA, which of course is an important technical signal.

NATGAS Video 10.06.20

Natural gas markets are dealing with an oversupply issue, but we are starting to see a lot of bankruptcies in the United States. Over the last few days, tropical storm Cristobal has shut down some refineries, but it has been but a minor blip in the overall picture of things. Because of this, I think it is more than likely going to continue to be very choppy and sideways market as we start to weigh the supply and demand issues, especially as the economies around the world start to reopen. That should in theory bring up demand, which of course helps the market overall. With all of this in mind, I think we go sideways but maybe squeeze just a bit higher.

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