Natural Gas Price Forecast – natural gas continues to struggleNatural gas markets continue to see resistance above, and although we have rallied a bit initially during the trading session on Wednesday, it’s obvious that the selling pressure is being nothing short of relentless.
Natural gas markets initially tried to rally during the trading session on Wednesday but found the $2.75 level a bit to resistive. Because of this, the market roll back a bit to show signs of even further weakness. Ultimately, if we can break above the $2.50 level that could be the beginning of a relief rally, something that we desperately need at this point. I believe that the overall attitude of this market will not change, but the relief rally will come from some type of event to cause a short covering. That is essentially what I am waiting for, because selling down here is being nothing short of reckless as we have gotten oversold by just about any metric.
NATGAS Video 07.02.19
Looking at this chart, the 20 day EMA, pictured in green on the chart, should cause a bit of resistance, but I also believe that the $3.00 level above will cause selling pressure. Ultimately, I do need to see at least that area tested to start shorting, and I certainly need to see some type of exhaustive candle to take advantage of. I have no interest whatsoever in trying to buy this market as it is certainly bearish for reason. We have far too much in the way of natural gas supply out there, and as we start to roll into the spring time in North America, the demand will drop. Beyond that, we have concerns about global demand as the economies around the world appear to be slowing down. If that’s going to be the case, there will be less demand for energy.
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