Natural Gas Price Forecast – Natural Gas Markets Recover a Bit on Tuesday

Natural gas markets rallied a bit during the trading session on Tuesday, showing significant support near the $1.60 level, which I believe extends down in a “zone of support” down to the $1.50 level. Overall, buying dips at these lower levels seems to be working out, as we have seen a lot of buyers near the $1.50 level over the years. Ultimately, it is more than likely only a matter of time before we turn around and reach towards the 50 day EMA again, which of course is a significant technical indicator for longer-term traders.

NATGAS Video 22.07.20

I have no interest in shorting this market, at least down at these low levels. I think that we are essentially trading in a range between the $1.50 level on the bottom and the $2.00 level on the top. With that, I continue to range trade this market but I recognize that we are at extreme lows so it certainly makes quite a bit of sense that it is easier to buy natural gas than it is to sell it. Furthermore, the heatwave in the United States continues to push up demand for the commodity while at the same time a lot of companies are starting to go under and fall to bankruptcy. This is a bit of a perfect storm for a rally, but I do not necessarily think that natural gas is going to enter a longer-term bullish cyclical market, just that we are trying to carve out a longer-term range at lower levels than typically seen.

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