Natural Gas Price Forecast – natural gas markets chop on Thursday

Natural gas markets have gone back and forth during the trading session on Thursday, as we continue to bounce around just below the $3.50 level, an area that has been important in the past. During the previous session on Wednesday, we tested the $3.25 level which was a gap, and now we have turned around to show signs of life. However, I think at this point it’s likely that we will continue to sellers when we rally. The 50 day EMA is just above at the $3.75 level, and I think that we will continue to see a lot of skepticism on these rallies. If we can break above there, then the market is very likely to test the $4.00 level, which is major psychological and structural importance and resistance.

NATGAS Video 28.12.18

I do think that we can break down below the $3.25 level, but it would not surprise me at all if we had to rally to build up the necessary momentum to break down. If we do, then I think the market breaks down to the $3.00 level underneath, which of course has a very significant amount of psychology attached to it, as well as structural support in the past. With the 50 day EMA turning lower, that shows that we are starting to rollover from a longer-term standpoint. Obviously though, if you are shorting at this level you are chasing the trade. Let the market bounced a bit before trying to do so.