Yahoo Finance Natural Gas Price Forecast – Natural Gas Markets Continue to Show Signs of Life
Natural gas markets have had a bit of a run higher as of late, so the fact that we pulled back a little bit from the recent run should not be a big surprise. We pulled back to the $1.80 round figure, which of course features the 50 day EMA just below it, so that is something worth paying attention to as well. Ultimately, I think that the market finds a reason to go higher, to reach towards the $2.00 level.
NATGAS Video 09.07.20
We have seen a lot of bankruptcies in this sector as of late, and that should help with the idea of the market being flooded with supply. If that is going to be the way forward, then eventually supply should dwindle, at least that is the theory. Further pushing prices higher would be the fact that temperatures in the United States are getting hotter again, which of course will drive up demand by residential consumers.
All things being equal, I think we do rally from here in continue to go towards the 200 day EMA which is sitting at basically $2.00. With this, I like the idea of holding onto a trade until then, but at that general vicinity I would anticipate seeing a bit of trouble. After all, the 200 day EMA does tend to attract a lot of attention by longer-term traders, and a lot of systems are built around the 200 day EMA that are automated. With that, I bullish but I recognize that we have a bit of the ceiling just above.
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This article was originally posted on FX Empire
