Natural Gas Price Forecast – Natural Gas Markets Stall Heading Into the Weekend
Natural gas markets have gone back and forth during the trading session on Friday, as traders collected profits going into the weekend. At this point, it looks as if the damage from hurricane Laura was not as devastating as feared, and therefore it makes a bit of sense that the natural gas markets may pause a bit here. After all, we had been straight up in the air, and at this point it is only a matter of looking for value.
NATGAS Video 31.08.20
The candlestick for the Friday session does suggest that we could get a little bit of a pullback, and quite frankly I would welcome that. It should give me an opportunity to pick up natural gas “on the cheap” underneath, as there is a nice gap at the $2.40 level waiting to be filled. Beyond that, the $2.20 level would also be an area of interest for me, as it was significantly important in the past from both sides of the trade. The 50 day EMA is racing towards that level, so the question is not so much as to whether or not we can get there, but whether or not price moves lower, or the 50 day EMA moves higher in order to converge?
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I think at this point in time a little bit of profit taking makes quite a bit of sense, so I am going to let the market fall and look for a buying opportunity underneath. That is essentially been the plan for a while now, but as the market ran ahead of itself, it was and always will be dangerous the chase that type of move.
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