Natural Gas Price Forecast – Natural Gas Markets at Major Level

Natural gas markets have fallen a bit during the trading session on Monday as traders came back to work, but then turned around to show signs of support. Perhaps this is due to the fact that we are so cheap, but at this point it looks as if the 50 day EMA is going to continue to be of some importance, as we hang around the $1.80 level. At this point, I believe that any rally will be faded, as the $2.00 level above is going to be massive resistance.

NATGAS Video 21.04.20

While I have been extraordinarily bearish of natural gas for some time, it does look as if we are trying to form some type of longer-term basing pattern. This doesn’t mean that it’s time to start buying, but it does suggest that perhaps the super cycle to the downside may be running out of steam. This makes sense, considering there are going to be massive bankruptcies out there just waiting to happen. With that in mind, I like the idea of fading rallies closer to the $1.90 level, but as soon as we break the $2.00 level, it’s time to stand up and take notice. Signs of exhaustion on rallies continue to be nice opportunities to sell, and I will take advantage of those on signs that we are starting to rollover on short-term charts. I don’t know if we have put in the complete bottom, but it would not surprise me at all to find out that we are getting relatively close bankruptcies in the United States will put upward pressure on this sector eventually.