Advertisement
Advertisement

Natural Gas Price Forecast – Natural Gas Markets Choppy

By:
Christopher Lewis
Published: Mar 30, 2021, 15:29 UTC

Natural gas markets have gone back and forth during the course of the trading session on Tuesday as we are squeezed between two major moving averages.

Natural Gas

In this article:

Natural gas markets have gone back and forth during the course of the trading session on Tuesday as we are sitting between the 50 day EMA above and the 200 day EMA below. By forming a neutral candlestick, it is likely that we will continue to see a little bit of indecision, and I did state previously that I was looking at the 50 day EMA as an area that I might get short of this market yet again. That being the case, I do think that it is only a matter of time before I get the opportunity to start selling again, but if we were to break above the 50 day EMA I would simply stand on the sidelines, at least for the time being.

NATGAS Video 31.03.21

If that breakout to the upside happens, then I will be looking towards the $2.80 level as a potential area of selling, as it would allow me to take advantage of an area that has obviously been important in the past as well. Either way, I only sell natural gas because of the oversupply issues and of course the fact that temperatures in the United States will continue to climb, thereby driving down most demand.

All things been equal, I believe that we eventually break down below the $2.25 level, and go much lower, perhaps down to the $2.00 level sometime this summer. This is a cyclical tray that works most years, and I do not see anything out there suggesting that this year will be any different. With that in mind, I continue to fade rallies and look to the downside although we are still a bit oversold.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement