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Natural Gas Price Forecast – Natural Gas Markets Show Signs of Stability

By:
Christopher Lewis
Updated: Jun 2, 2020, 18:46 UTC

Natural gas markets went back and forth during the trading session on Tuesday, as it looks like we are trying to find a bit of a bottom.

Natural Gas

Natural gas markets have gone back and forth during the trading session on Tuesday as we continue to see a lot of noise. Natural gas is at historic low levels, and I think at this point we are starting to see people trying to find a bit of value in a market because it is so “cheap.” Looking at the chart, I do see the previous gap as a major support level, that extends down towards the $1.70 level. I think somewhere between here and there we should see some type of bounce that we can take advantage of.

NATGAS Video 03.06.20

The 50 day EMA above is a major technical level the people will be paying attention to. Ultimately, this is a market that I think will continue to see a lot of volatility, but I think we are trying to form a larger “basing pattern” due to the fact that the natural gas markets are about to see a wave of bankruptcies it will take quite a bit of supply off-line.

Furthermore, the market is trying to price and some type of economic “restart” to the economy globally, therefore the idea of demand. This might be a little bit of a “perfect storm” for an attempt at a trend change but will obviously take a significant amount of momentum to make that happen. I believe at this point it is likely we will see choppy with upward momentum more than anything else.

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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