Natural Gas Price Forecast – Natural Gas Markets Shy Away From Two Dollars

Natural gas markets have gone back and forth during the trading session on Wednesday as we could not break above the $2.00 level, an area that of course is psychologically important. Even if we do break above there, it is likely that the market will probably go towards the $2.09 level, and then eventually try to break out above there. Having said that, I do not think it happens in the short term and quite frankly I believe that the natural gas markets are being buoyed by a couple of different things.

NATGAS Video 28.05.20

The first thing of course is the fact that we are going to get a lot of bankruptcies in the drillers, perhaps as many as 200 companies. Another thing that helps natural gas is the fact that economies are opening up, and people are looking to buy energy in general. I do not think that is enough to send the markets skyrocketing, but clearly, we are trying to form some type of bigger “rounded bottom.” Looking at the downside, the 50 day EMA offer support just as the $1.80 level does due to the fact that it has shown itself to be resilient as of late.

Ultimately, this is a market that I think will continue to go back and forth it makes a nice day trading opportunity for a lot of traders out there who are patient enough to wait until we get to the outer reaches that signify the $0.20 range that the market has been stuck in as of late.

For a look at all of today’s economic events, check out our economic calendar.