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Natural Gas Price Forecast – Natural Gas Markets Volatile On Thursday

By:
Christopher Lewis
Published: Mar 12, 2020, 16:21 UTC

Natural gas markets initially fell during the trading session on Thursday, plunging below the $1.80 level before rallying after a bullish inventory number for once.

Natural Gas Price Forecast – Natural Gas Markets Volatile On Thursday

Natural gas markets have had a rough trading session on Thursday, breaking down below the $1.80 level before turning around to show signs of life again. This was predicated upon the idea that there was finally demand for natural gas, it is possible that we are going to start to see a certain amount of bullish pressure in this market finally due to the fact that credit markets are starting to get stressed, meaning that a lot of fracking companies are bound to take a bashing. There are most certainly going to be a wave of bankruptcies out there, and that could bring down supply. In a sense, this could be a bit of an odd year, as the market could rally during the war months, but I think it is limited just because of the lack of demand more than anything else.

NATGAS Video 13.03.20

The $2.00 level above is a significant resistance barrier, and if we can break above there, then the market is likely to try to go towards the $2.20 level. That is an area that should have plenty of resistance built into it as well. However, keep in mind that the market has been so heavily shorted that we may get a “rip your face off rally” in the meantime. This is a signal to start buying natural gas, it’s a signal to get out of the way if things get to rally. The 200 day EMA is currently at the $2.27 level and should be respected as well. Any rallies at this point should be sold into, recognizing the fact that they could last for multiple sessions.

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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