Natural Gas Price Forecast – Natural Gas Markets Stall After Huge MoveThe natural gas markets have gone back and forth on Tuesday as we may have gotten a bit ahead of ourselves after the massive move on Monday.
Natural gas markets have gone back and forth during the trading session on Tuesday, as the market may have gotten a little bit over bought. The $2.15 level has seen little bit of profit-taking, which of course makes quite a bit of sense after this massive move. The 200 day EMA is now well below the current price, so it does make quite a bit of sense that the market participants will pay close attention to that. On the other hand, if the market was to break above the $2.20 level, then we could go much higher.
NATGAS Video 05.08.20
At this point in time, I think it is obvious that the natural gas market is changing its overall tune, so I will that I would be looking for is some type of pullback in order to find value. The $2.00 level obviously will attract a certain amount of attention in and of itself, and therefore I think that we will see a bit of a reaction there. The 50 day EMA is down at the $1.81 level, and essentially the “floor” in the market for the short term.
This is a market that I think eventually goes higher, but we may need to find some value on a pullback in order to get long again. The massive amounts of bankruptcies out there should continue to propel natural gas higher, just as the colder temperatures coming will probably come into play as well. I believe that we are still in the process of forming a longer-term bottom as the market is extraordinarily cheap from a historical perspective.
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