Natural Gas Price Forecast – Natural Gas Markets Break Down AgainNatural gas markets broke down significantly during the trading session on Thursday, slicing through the $2.20 level rather significantly. By doing so, we have entered a major support zone, as it should cause a bit of volatility.
Natural gas markets broke down below the $2.20 lower yet again, as we are in the middle of the overall zone that extends down to the $2.00 level. At this point in time, the market is testing a major area, but at this point I would expect a lot of noise in this general vicinity. The fact that we are approaching the $2.00 level in the dead of winter is quite remarkable but is probably partially helped by the Ukrainians in the Russian signing a deal so that more gaskets thrown into the European Union. Quite frankly, natural gas can’t save itself based upon what I’ve seen this winter, and cold temperatures don’t seem to be making any difference.
NATGAS Video 03.01.20
At this point, I think we are going to go looking towards the $2.00 level, something that would have been almost impossible to think about in any sincerity as recently as a few months ago. That being said, the easiest way to trade this market is to look for rallies that show signs of exhaustion, and then sell them at the first signs of trouble. With that in mind, this still is a short-term traders market, as anybody who is longer-term minded will have already been short of this market. The 50 day EMA above is at the $2.37 level, and any rally at this point should be looked at with major suspicion. All things being equal, that’s only we can trade this market because we simply cannot trust any rallies at this point in time.