Natural Gas Price Forecast – Natural Gas Markets Testing Trendline

Natural gas markets fell significantly during the trading session on Monday, reaching down towards the uptrend line that I have drawn on the chart. The 50 day EMA is just above, near the $1.85 level, which of course will attract a certain amount of attention. In fact, the last three daily candlestick before the Monday session all tested that level but found resistance. If we can break above the 50 day EMA, then it is likely that the market should then go towards the $2.00 level above. On the other hand, if we break down below the candlestick for the trading session on Monday, then we could drop down towards the $1.60 level which was a major support level and could bring in the idea of the previous gap.

NATGAS Video 09.06.20

All things being equal, I do not necessarily think that natural gas is going to suddenly skyrocket straight up in the air but it certainly has been oversold for some time, and even though the market has been oversold, we still have a massive oversupply of natural gas in general, despite the fact that we are going to get a lot of bankruptcies in the United States when it comes to natural gas drillers and producers.

That being said, we are at extreme lows, so I think we are trying to form a longer-term “rounded bottom”, which gives us an opportunity to perhaps participate in a little bit of a recovery. I do not have any interest in shorting, at least not at these exceptionally low levels.

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