Natural Gas Price Forecast – Natural Gas Markets Running Into Resistance

Natural gas markets rallied a bit during the trading session on Friday, after initially gapping lower. The $2.20 level has offered a significant amount of resistance, so the fact that we have failed in this area is not a huge surprise. Having said that, I think that some type of pullback is likely to affect itself, perhaps reaching down towards the 200 day EMA which is sitting just below the $2.00 level.

NATGAS Video 10.08.20

That is an area that was significant resistance in the past and it should now be support. Ultimately, I think that this pullback is exactly what will be needed in order to make the breakout. The 200 day EMA is just as good of a place as any to look for value, just as the 50 day EMA will be at the $1.85 level. It is obvious that we have shifted attitude in general, and I think that given enough time we will find value hunters after this massive move higher. Ultimately, we could break above the top of the shooting star from the Thursday session, but I would prefer to see a pullback before we get that move. If we do break above, there then it could very well end up being a bit of a “blow off top” in the short term.

It looks as if we are trying to form a base for the winter months coming, and of course the tropical storm causing chaos in the natural gas production it can be very bullish. All things being equal, the falling US dollar is also going to be a major influence as to the value of this commodity going higher.

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