Natural Gas Price Forecast – Natural gas markets rally and then tradingThe natural gas markets rallied a bit during the trading session on Monday, as US traders were away at Labor Day festivities. At this point, it’s only a bit of thin electronic trading that has been going on, so therefore you can only read so much into the price action.
Natural gas markets have rallied a bit during the trading session on Monday, reaching towards the highs at $2.35 that I have marked on the chart. You can see that we have recently broken above a major downtrend line, and now are trying to hold on to the 50 day EMA as support. This is a very good looking move, but we are starting to fade a little bit from here. I think at this point we are very likely to see this market go sideways overall, with perhaps some buying underneath to build up a bit of a “bottoming pattern.”
NATGAS Video 03.09.19
We are a bit early for the Winter bounce that we typically get in this market, but we are starting to see the bottoming pattern form. It is because of this that I think that the $2.00 level will now not be broken to the downside and should be thought of as the “floor” of the overall market. If we were to break down through there, it would of course be very catastrophic. In the meantime, I think that we could very well pull back from here but I think there are plenty of buyers underneath and I am starting to switch from a “sell the rallies” type of scenario to possibly buying dips that show signs of support. This is a seasonal phenomenon, and only something that I will be looking to do through the cold months in North America and Europe.
Please let us know what you think in the comments below