Natural Gas Price Forecast – Natural Gas Markets Looking a Little “Toppy”
Natural gas markets have rallied a bit during the trading session on Thursday, reaching towards the $2.29 level above before pulling back a bit. That being said, the market looks likely to see a pullback, but I also think that there will be plenty of support underneath. At this point in time, the $2.00 level should be massive support, as it was previous resistance. A pullback from here should continue to find plenty of buyers as we have clearly seen a shift in attitude.
NATGAS Video 07.08.20
Furthermore, the natural gas markets have shifted the overall attitude as traders are starting to focus on bankruptcies in the fact that the market is priced in US dollars, which of course drives commodities higher. That being the case, I am looking for pullbacks offer a bit of value that I can take advantage of. It would be extraordinarily difficult to buy natural gas at this high level, as you would be “chasing the trade.” This is a sign that the market is getting a little overdone, but if you wait for a bit of value can take advantage of it.
Furthermore, this could be the beginning of a bigger cycle, as we are trading the September contract right now, and therefore starting to look towards the colder temperatures later in the year. I have no interest in shorting anytime soon, so therefore I look at pullbacks as value, not some type of selling opportunity anytime soon.
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This article was originally posted on FX Empire
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