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

Natural gas markets have gone back and forth during the trading session on Tuesday to dance around the 200 day EMA. The 200 day EMA of course is a longer-term indicator that a lot of people pay attention to determine the overall trend. The $2.40 level is an area that has been important a couple of times, and if we were to see a bounce it is probably going to be somewhere around here. However, after we have seen weather reports suggesting that the month of December could be warmer than usual, we have seen an absolute hammering of natural gas.

NATGAS Video 09.12.20

If we can break above the $2.50 level, it is possible that we go looking towards the 50 day EMA which is currently at the $2.80 level. If you read my analysis yesterday, you know that I have given up on the cyclical trade, and I think at this point in time it rallies are to be sold into. I had originally been waiting for some type of shot higher, but it just never came. While I do think we may get another bounce, it is probably going to be the “last hurrah” of the winter. At that point, it is likely that we would see sellers come in and punish this market due to the fact that demand will come anywhere near the massive amounts of supply which is typical of this market.

Ultimately, this is a market that should eventually rally and show signs of exhaustion that we can take advantage of. Fading signs of exhaustion is exactly what I am going to do, and I would like to see at least the $0.20 jump towards the 50 day EMA to start looking for selling opportunities.

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