Natural Gas Price Forecast – natural gas markets break major support

Natural gas markets broke down during the trading session on Friday, breaking through the 50 day EMA. At this point though, it should be pointed out that the continuation shooting star from Thursday has proven itself to be reliable, and it now looks as if rallies at this point will probably be selling opportunities. I would be surprised that we bounced from here, but I think that will simply be a nice opportunity to get short. There are gaps underneath that will need to be filled, down at the $3.75 level, then possibly the $3.50 level.

NATGAS Video 17.12.18

I believe that at this point the market is starting to focus on warmer temperatures in the spring, so therefore I don’t have any interest in buying this market. Natural gas is over abundant in North America alone, so at this point I don’t think there’s any real sustainable bullish pressure in this market. Things got way ahead of themselves, and now we are starting to see reality to come back into this situation.

I’m looking for short-term bounces to start shorting yet again. I think that this will be a nice opportunity to sell this market every time we rally as there has been a massive amount of technical damage. The 50 day EMA of course is important, so I think some technical buying will come back, but I think that will be short-lived. As we roll over into Spring contracts, things will only get worse for pricing as traders, as traders will be focusing on the warmer temperatures.