Natural Gas Price Forecast – Natural Gas Gives Up Early Gains

Natural gas markets have rallied a bit during the trading session on Friday but gave back the gains near the $1.74 level to turn around and form a bit of a shooting star. Having said that, if we can break above the high of the Friday session, that should send this market towards the 50 day EMA. Ultimately though, the shooting star candlestick suggests that we have more base building to do than anything else. The $1.60 level underneath has significant support. That is an area that has been crucial multiple times, and I do suspect that it will be going forward. However, if we can turn around a break above the top of the shooting star for the trading session on Friday, then I think it will bring in more buyers due to the fact that we are seen so much in the way of stubborn rigidity.

NATGAS Video 18.05.20

Ultimately, this is a market that I think will continue to try to build up a basing pattern, because of the massive amounts of bankruptcies out there. Ultimately, those bankruptcies will drive up the price of natural gas as supply will dwindle. Having said that, it is going to have to come from the supply-side, because quite frankly the demand-side is not getting much better anytime soon. With that in mind, I think that we do move higher, but we will probably be constrained by the 200 day EMA for quite some time. A break above there would be a strong sign, but we are ages away from seeing that happen in the current state of the markets. Ultimately, I have no interest whatsoever in shorting this market to the downside.