Natural Gas Price Forecast – Natural Gas Flirting With 200 Day EMA

Natural gas markets have broken down a bit during the trading session on Friday, dipping below the 200 day EMA. That being said, the market looks as if it is trying to find a certain amount of stability in this area, and perhaps a short-term bounce could happen. The market is a little bit oversold on short-term charts but given enough time I think we will be looking at a move to the upside to try and start selling again. Ultimately, this is a market that given enough time will start to look at the overall negativity coming due to the fact that there is going to be a significant lack of demand due to warmer temperatures coming.

NATGAS Video 25.01.21

At this point, bounce would probably be more of a technical bounce anyway. The 50 day EMA above at the $2.66 level will probably offer resistance, but most certainly the $2.80 level will as well. I have got no interest in trying to buy this market, because quite frankly there is so much in the way of negativity and oversupply out there that it is hard to believe you would be looking to buy this contract for anything more than a quick scalp. However, this is a market that I think will be more volatile than anything else. Regardless, I have no interest in trying to get too cute with this and I will simply wait for a selling opportunity on signs of exhaustion above. As we start to trade the March contract, this suggests that we are going to see more bearish pressure in general.

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