Natural Gas Price Forecast – Natural gas markets chop back and forth on FridayNatural gas markets went back and forth during the day on Friday, shopping around as we continue to see a lot of indecision. Quite frankly, this is to be expected considering how negative this market has been. At the end of the day, would you trust to rally either?
Natural gas markets have gone back and forth during the trading session on Friday, showing signs of indecision which would make sense as we are heading into the weekend. Natural gas markets have been brutalized for quite some time, so that short-term rally, although somewhat impressive, still leaves a lot to be desired. The $2.67 level features the 50 day EMA, and that’s an area that has repelled advances by the bullish traders out there so far. Because of this, I think we continue to chop back and forth on the short-term chart, and then perhaps do what we can to continue the longer-term downtrend.
NATGAS Video 20.05.19
The $2.50 level for me is a massive “floor” in this market, so therefore I think we will continue to see a lot of questions about that area as to whether or not we can actually break through it. To the upside, if we break above the 50 day EMA, then we could test the $2.70 level, which should be somewhat resistive. A break above there opens the door to $2.80, followed by $2.90. If we do break above the $2.70 level, you can make an argument for a long position, but quite frankly this time a year I do not like buying natural gas under any circumstances. With this, I’m simply looking for opportunities to short the market on failed short-term rallies, as it gives us an opportunity to take advantage of the overall attitude of the market.
Please let us know what you think in the comments below