Natural Gas Weekly Price Forecast – Natural Gas Markets Stall Ahead of Major Level
Natural gas markets have gone back and forth during the course of the week, showing a little bit of hesitation just below the crucial $2.50 level. Ultimately though, this is a market that clearly has made up its mind to go higher, lease for the intermediate term. At this point in time, like the idea of pulling back and finding value underneath, perhaps somewhere near the $2.20 level, and then underneath there at the $2.00 level which features the 50 week EMA. Although this has been a very bullish move, the reality is we cannot go in one direction forever. This is especially true when you are trying to change the overall trend.
NATGAS Video 24.08.20
With the front month being September and the fact that we are getting ready to switch over to even colder months, it makes sense that natural gas should rally a bit due to demand. That being said, it does make quite a bit of sense that we should also pay attention to the fact that there has been a lot of bankruptcies out there and then of course the massive amount of demand that has picked up due to the heat wave in the western part of the United States.
With all that in the background, I think that buying on the dips continues to make quite a bit of sense and I will be very interested in natural gas the $2.20, but I also recognize that the $2.50 level, perhaps even the $2.60 level, will offer a significant amount of resistance as the 200 week EMA is in that area.
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