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Natural Gas Price Forecast – Natural Gas Markets Show Choppiness

By:
Christopher Lewis
Published: May 7, 2020, 15:39 UTC

The natural gas markets have gone back and forth during the trading session on Thursday as the natural gas markets are trying to figure out what the longer-term outlook will be. That being said, the market is highly likely to continue to find buyers on dips.

Natural Gas

Natural gas markets continue to go back and forth and show signs of exhaustion, as perhaps we had gotten a little bit ahead of ourselves. Even if we do break down from here, there should be plenty of support underneath at the gap. Because of this, there should be plenty of support to be found underneath, and it is only a matter of time before the buyers come back. After all, lot of drillers are starting to go out of business, and therefore it makes sense that supply will eventually drop.

NATGAS Video 08.05.20

Self-regulating the supply makes quite a bit of sense for US drillers, and therefore it is likely that we will continue to see a little bit of erratic behavior in the market, and we also have the 50 day EMA sitting just below that could come into play for support. With that, I like the idea of buying dips, but I also recognize that we may have a little further to go to the downside in order to build a bit of momentum and support. The 200 day EMA above is at the $2.12 level, an area that will continue to be significant resistance, but if we can break above there it is likely that the market goes looking towards the $2.20 level. If we can break above the $2.20 level, then we should continue to go much higher. At this point in time, natural gas is in the midst of a potential trend change, which of course is always a very messy affair.

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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