Natural Gas Price Forecast – Natural Gas Markets Choppy To Kickoff WeekNatural gas markets gapped higher to kick off the trading session on Monday, but then found quite a bit of resistance at the 50 day EMA. Because of this, it’s likely that we will continue to see a lot of back and forth in the ways in this important area.
Natural gas markets have gapped higher to kick off the week on Monday, reaching towards the 50 day EMA on the daily chart, which is sitting at the $1.81 level. The fact that the $1.80 level is causing a bit of trouble should not be a huge surprise considering that this market tends to be attracted to $0.20 and rolls. If that’s going to be the case, then ultimately the market will continue to see a lot of back and forth in this region, and even if we do break to the upside, I think we will struggle to get above the $2.00 level.
NATGAS Video 14.04.20
To the downside, if the market was to break down below the lows of the trading session on Monday, and then by extension the Friday session, it opens up the door to the $1.60 level again. That area has been massive support, and I would be a bit reticent to hang on to a move below there, because I think it is so cheap that it gets to be to the point where there’s nobody left to sell natural gas. All things being equal, I think you continue to fade rallies in the natural gas markets as demand certainly is dropping due to both the coronavirus slowdown and of course weather. After all, if the temperature is going to start rising again, it’s very likely that the market will start to price and the fact that there’s even less interest in natural gas as far as heating homes is concerned in the northern hemisphere.