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Natural Gas Price Forecast – Natural Gas Markets Testing Big Figure

Christopher Lewis
·2-min read

Natural gas markets have broken down a bit during the trading session on Friday but found buyers near the $1.92 level to turn around and reach towards the $2.00 level. At this point, we are setting up for stability finally, and may be setting up for a bigger move. If we can break above the 200 day EMA, then it is likely that the market could rally significantly. All things being equal, if we can break above there then I would anticipate a move back towards the $2.30 level, possibly even the $2.40 level. Obviously, we will have to keep an eye on short-term pullbacks, but it certainly looks as if we have had a nice pullback at this point in time where we can find a bit of value.

NATGAS Video 21.09.20

With that being said, the trade is probably more or less for Monday, not necessarily heading into the weekend. On the other hand, if we were to break down below the bottom of the candlestick for the Friday session, then at that point we could go as low as $1.80 where the next major buying pressure is to be found. What is worth noting down there is that we have a gap that has not been filled yet, so that is something to pay attention to. Ultimately, this is a market that is getting oversold after originally been overbought. We will need to find some type of median, and I think that is north of here, so I am looking for buying opportunities.

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This article was originally posted on FX Empire