Yahoo Finance Natural Gas Price Forecast – Natural Gas Markets Show Signs of Exhaustion on Tuesday
Natural gas markets continue to be very noisy, dropping a bit during the trading session on Tuesday. We are reaching towards the $1.70 level which of course will attract a lot of attention, as it is an area that has been both support and resistance previously. With that being the case, I think that the $1.70 level could very well offer an opportunity for the market to bounce, but if it does not then at the end of the day it is likely that we will see the market test the $1.60 level next.
Granted, one of the main drivers for the natural gas markets to rally as of late has been heat, and it does seem to be dissipating a bit in the United States. Nonetheless, we also have a massive amount of bankruptcies in this industry, and that should help bring down supply as well.
NATGAS Video 15.07.20
The real question on everybody’s mind of course is going to be demand as there are serious questions as to whether or not there will be any due to the economy is locking down. If that is going to be the case, then one would think that there would be less commercial demand, which of course is a major factor. With that being the case, I think that we need to be overly cautious, but I do believe that the $1.50 level will continue to be a “hard floor” for this market, as we had seen a bit of a double bottom in that general vicinity.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
