Natural Gas Weekly Price Forecast – Natural Gas Markets Explode Higher
Natural gas markets have exploded to the upside during the week, breaking above the $2.00 level. Furthermore, we even tested the $2.20 level before pulling back a bit on Friday. I think at this point in time it is only a matter of time before we see buyers come in and try to pick this market up “on the cheap” as there are plenty of reasons to think that the natural gas market should continue to go higher. To begin with, the US dollar is going to continue to fall in strength over the longer term, and that of course should help most commodities, including natural gas.
NATGAS Video 10.08.20
At this point in time, believe that the $2.00 level should be significant support, as it was significant resistance. To the upside, I believe that the market could go as high as $2.50 in the short term, and then eventually the $3.00 level could be targeted sometime later this year. Keep in mind that a lot of natural gas producers have gone bankrupt, and of course the supply has started to fall off a bit because of that. Furthermore, we have at the tropical storm situation coming into play, and the front month being September does not hurt either. Overall, this is a market that I think eventually find its way higher just due to the fact of inflation and colder temperatures coming in a few months more than anything else. Whether or not we can break above the $3.00 level is a completely different question to say the least.
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This article was originally posted on FX Empire
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