Natural Gas Price Forecast – Natural Gas Markets Testing Trendline Again

Natural gas markets have pulled back a bit during the trading session on Friday, testing the trendline. The 50 day EMA is just above though, and that causes a bit of resistance. The uptrend line is offering support, while the 50 day EMA as offering resistance. In other words, we are squeezing at this point but one thing that is worth paying attention to is the fact that we have formed a huge “rounded bottom” potentially, and that of course is a longer-term pattern that people will be paying attention to. Furthermore, we have a lot of US drillers and suppliers going bankrupt, so that will bring down a certain amount of the supply. That obviously is bullish for price.

NATGAS Video 15.06.20

To the downside, I see quite a bit of support at the $1.60 level anyways, and the fact that we bounced so hard on Wednesday also suggests that any debt will be plowed into by those looking to find value. Part of the gains will probably be due to the fact that economies are starting to open up, and it should increase demand. Furthermore, as we lose more and more of those companies, that will bring down the supply, thereby squeezing price higher. I do not necessarily think that we are going to go much to the upside though, I think that it will be somewhat limited. The 200 day EMA is out the $2.06 level, so I think that is as good of a target is any if we do get that breakdown. Expect a lot of choppy behavior.

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