Natural Gas Price Forecast – Natural gas hits resistance

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