Natural Gas Price Forecast – Natural Gas Markets Reach 200 Day EMAThe natural gas markets have rallied significantly during the trading session on Wednesday, as we have bounced hard from the crucial $1.80 level.
Natural gas markets have exploded to the upside, showing signs of very bullish pressure from an area that I said you might be wanting to watch. Now that we have done that, it is likely that the market will pay quite a bit of attention to this indicator. If we pull back from here, I think it is likely that markets will be looking to find buying opportunities, so the $2.00 level would be a nice area to see where we could see buyers jump in, so I like the idea of a pullback as an opportunity to take advantage of what I still perceive as value.
NATGAS Video 24.09.20
Underneath, the $1.80 level is going to offer support, and where we had seen a massive gap previously. With that being the case, I think that as long as we can stay above there, the market will have a certain amount of buyers out there willing to get interested in the market. To the upside, I believe that the $3.00 level is still the target over the course of the winter, and as we are just now starting to trade the cold months, I do think that we are kicking off the next leg higher.
Overall, I have no interest in shorting this market, at least not at this point in the calendar. I am not a longer-term bullish trader when it comes to natural gas, but I do think that the next couple of months will probably follow the seasonality that we have seen almost every year. What is telling is that the natural gas markets shot straight up in the air even as the US dollar went much higher.
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