Natural Gas Price Forecast – Natural gas hits resistance

Natural gas markets initially rallied during the day on Tuesday but ran into a significant amount of resistance in the form of the 200 day EMA. This isn’t a huge surprise, quite frankly the market has gotten ahead of itself.
Christopher Lewis
Natural gas daily chart, September 11, 2019

Natural gas markets initially rallied during the trading session on Tuesday but found enough resistance above the 200 day EMA to turn things around of form a bit of a shooting star early in the day. That suggests that we are running into some exhaustion and quite frankly I think that’s necessary considering we have been parabolic over the last couple of weeks. Natural gas is still a long term bearish market but we are starting to reach towards the colder months, and that of course will have its influence on pricing and supply. This is a short-term phenomenon that normally works out in the favor of natural gas, only to collapse towards the beginning of the year.

NATGAS Video 11.09.19

With that, I like the idea of buying short-term pullbacks, or a break above the shooting star from the trading session. Even though the 200 day EMA is starting to show signs of massive resistance during the day, I think underneath near the 50 day EMA we should find plenty of support, assuming we even get down there. With that, I think that if you are short-term trader you could perhaps sell this market, but you need to get out at the first signs of trouble as I believe that the seasonal shift has occurred in the market, which you must be cautious about as it can skyrocket $2.00 against you over the course of a few short days in extreme conditions. The easier trade is to simply let the market fall and then form some type of supportive candle such as a hammer or bullish and golfing candlestick.

Please let us know what you think in the comments below

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