Natural Gas Price Forecast – Natural Gas Markets Break Into Support Area

Natural gas markets fell again during the trading session on Tuesday, as we simply cannot pick up any type of momentum. At this point, the market is likely to see the warmer temperatures in the United States as a major problem.
Christopher Lewis
Natural Gas Price Forecast - Natural Gas Markets Break Into Support Area

Natural gas markets fell slightly during the trading session on Tuesday as traders continue to look at this market as being very bearish, due to the oversupply of natural gas, as Americans have drilled 17% more this past year than they did the previous one. That being the case, there is far too much supply to get through rather easily and I think we are more than likely going to continue to see natural gas struggle until we get some type of massive cold storm in the United States. Until then, rallies would be looked at with major suspicion and therefore I think at this point it’s probably best looked upon as a market that you should be selling on short-term rallies the show signs of exhaustion. Eventually, we will probably get some type of massive spike higher, but even then, I think it’s only gotten a kickoff more selling. Quite frankly, this winter has been a complete disaster for natural gas producers and for that matter anybody has been remotely bullish.

NATGAS Video 02.01.20

I suspect that the 50 day EMA above is going to be resistive, as the $2.40 level is an area that we have seen action at previously anyway. That being said, the 200 day EMA is closer to the $2.50 level which obviously will attract a lot of attention also. To the downside, I think the market will find plenty of buyers near the $2.00 level, which is an area that is a large, round, psychologically significant figure and therefore should be respected.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.