Natural Gas Price Forecast – Conntinues to Test Previous Uptrend Line

Natural gas markets have rallied just a bit during the trading session on Friday to reach towards the previous uptrend line, and of course the 200 day EMA that sits at the same place. Furthermore, the 50 day EMA is starting to drift lower and perhaps reach towards the 200 day to make a “death cross” heaven enough time. This would make sense, considering that natural gas demand will fall off of a cliff as the temperatures in the United States and Europe warm up.

NATGAS Video 12.04.21

The oversupply of natural gas of course continues to be a major issue, as the market players are decidedly bearish at this point, and perhaps a little bit of a short covering was the theme during the day on Friday as people went home for the weekend. Nonetheless, I think it is only a matter of time before we go down to the $2.25 level, possibly even the $2.00 level. With this being the case, I think what you are looking at is a market that is bouncing enough to find sellers above and will continue to look at the first signs of exhaustion as a selling opportunity. I have no interest in buying this market, at least not until October and therefore no matter what happens next, I will be looking for an opportunity to sell. Demand simply will not be enough to take out the supply anytime soon, so all I need to see is a significant wick to the upside to start selling again on the daily chart.

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