Natural Gas Price Forecast – natural gas continues to rotate

Natural gas markets went back and forth during the trading session on Thursday, as we await natural gas inventories and of course the demand picture becoming a bit clearer. We are at historically low levels though, so it’s very likely that we are going to see back-and-forth trading, but it will was worth noting that the inventory numbers came out just a bit hotter than anticipated. Regardless, natural gas is so overabundant that it’s difficult to imagine a scenario where it rallies for the longer-term.

NATGAS Video 22.02.19

The $2.50 level underneath is massive support, so I do believe it’s going to be very difficult to break down through there. If we do, we probably go looking towards the $2.25 level, but at this point I find that very unlikely. Ultimately, this is a market that I believe will continue to respect this longer-term bottom, so a relief rally makes quite a bit of sense. That relief rally should be an opportunity to take advantage of an opportunity to sell at higher levels. The $3.00 level is starting to see the 50 day EMA lean into it, so that should give us a couple of reasons to sell. Beyond that, the gap that formed at the $3.00 level will attract a lot of attention.

I am a seller of these rallies that show signs of exhaustion, and if we can break above the 50 day EMA, then we would target the 200 day EMA which is currently closer to the $3.15 level.

Please let us know what you think in the comments below