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Natural Gas Price Forecast – Natural Gas Markets Rally Into the Weekend

By:
Christopher Lewis
Published: Jun 19, 2020, 15:50 GMT+00:00

Natural gas markets rallied a bit into the weekend, gaining slightly from the $1.60 floor that we continue to see.

Natural Gas

Natural gas markets have rallied a bit during the trading session on Friday, as we headed into the weekend on a slightly positive note. The market has continued to see a lot of support at the $1.60 level, extending down to the $1.50 level. At this point, I think it is only a matter of time before we reach towards the 50 day EMA again, which means we have a little further to go to the upside. At this point, I think that we will continue to see a lot of back and forth but more of an upward tilt due to the fact that we have gotten so “cheap.”

NATGAS Video 22.06.20

To the downside, the $1.50 level is a massive support level and an area that continues to attract a lot of attention on longer-term charts. With that in mind, if we were to break down below there it would be extraordinarily negative. And could lead to a much bigger breakdown in general. However, I think that is very unlikely based upon historical price action and of course the fact that we are starting to see bankruptcies in this field. If that is going to continue to be the case, it is likely that we will see natural gas markets rally a bit from here, as supply should come down. To the upside, I think the $1.80 level is significant resistance, and I think that resistance extends further towards the two dollars level, so we were to break above $1.80 it is likely we could go looking towards the two dollars area.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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