Natural Gas Price Forecast – Natural Gas Markets Break Short-Term ResistanceThe natural gas markets initially pulled back during the trading session on Friday but then shot straight above the $2.20 level. By doing so, the market looks very likely to continue to try to reach towards the upside.
Natural gas markets initially pulled back a bit during the trading session on Friday, but then shot through the $2.20 level later in the day. This is short-term resistance, but at the end of the day I think that this is still a very negative market. We may get a short-term pop due to colder temperatures coming in the later part of January, but this is a temporary situation more than anything else. Ultimately, the 50 day EMA is currently trading at the $2.33 level and should continue to cause a bit of resistance. Quite frankly I’m looking for an opportunity to short this market if we do rally, because with the massive amount of over drilling this year, it’s difficult to imagine a scenario where we suddenly take off to the upside.
NATGAS Video 13.01.20
To the downside, the $2.00 level should continue to offer massive support, so if we were to break down below there would be extraordinarily negative. In fact, I see the two dollars level extending all the way to the $2.20 level that should offer plenty of support. Ultimately, this is a market that should continue to be very noisy in this area, but quite frankly we are oversold so it should not be that difficult to imagine that we could get a little bit of a bounce but for anything sustainable it would take a major shift in not only the weather, but also the massive oversupply. I don’t see that happening, so any rally at this point is probably going to be a nice opportunity to get short.
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