Natural Gas Price Forecast – Natural Gas Hangs Around 200 Day EMA

Natural gas markets initially pulled back a bit during the trading session on Thursday but then rallied again as we continue to see a lot of noise in general. At this point, it looks as if we are going to continue to be influenced by the gap just above, but if we can break above there then I think we are going to go looking towards the 50 day EMA. The 50 day EMA of course would also be an area of influence, so I think in that area if we can get some type of exhaustive candle, we could be looking at a nice selling opportunity.

NATGAS Video 26.03.21

Remember, the seasonality of this market suggests that there will be much less demand in the short term, at least for the next several months as temperatures start to rise again in the northern hemisphere. I am looking for some type of exhaustive candle near the 50 day EMA to continue the overall downtrend that we have been an over the last couple of months.

All things been equal, I think we are going to go down to the $2.25 level which was the significant swing low roughly 6 months ago, and then eventually go down to the $2.00 level. At this juncture, this is a market that I think will continue to see a lot of noise, but I would be taking advantage of any rallies as an opportunity to simply go with what the strength of the market is, and that of course is to the downside as we not only have to worry about temperatures changing, but a massive oversupply of natural gas.

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