Natural Gas Price Forecast – Natural Gas Continue to Trade in Same Range

Christopher Lewis
·2 min read

Natural gas markets have initially gapped higher during the trading session on Monday but then turned around to fall towards the $2.20 level by the time the New Yorkers got on board. All things being equal though, when you see this it is almost as if it is forming some type of megaphone pattern, which can be negative, but quite frankly I think this would only lead to a pullback where we could find more value closer to the $2.00 level. In fact, I would love to see that but right now we are still essentially going sideways in general.

NATGAS Video 11.08.20

If we can break above the highs over the last couple of days, then we could go looking towards the $2.40 level, possibly even the $2.50 level. At this point in time it is likely that natural gas will continue to benefit from the falling US dollar, impending bankruptcies in the natural gas field. All things being equal though, we need to wait in order to find some type of value underneath to get involved.

If we do break to the upside, it is a little bit more of a painful trade but clearing those highs from the previous week could have me buying natural gas as well. We are trading the September contract, so we are starting to focus on the lower US dollar in congruence with the colder temperatures coming, and therefore it is possible that we could see a little bit more of a bullish move. I had been talking about a basing pattern, it looks like it is completed and now it is only a matter of finding value on dips.

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This article was originally posted on FX Empire

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