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Natural Gas Price Forecast – Natural Gas Markets Continue Choppy Behavior

By:
Christopher Lewis
Published: Apr 15, 2021, 15:42 UTC

Natural gas markets have gone back and forth during the course of the trading session, showing signs of indecision yet again.

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Natural gas markets have gone back and forth during the course of the trading session on Thursday as we continue to bounce around between the 200 day EMA on the bottom and the 50 day EMA on the top. That being said it should continue to attract both bullish and bearish traders, and of course the inventory number will have its say.

NATGAS Video 16.04.21

For what it is worth, we have a significant amount of cold weather in the United States for the next several days, but this is a short-term phenomenon and not something that will continue to be an issue. All things being equal, this is a market that if we can break down below the 200 day EMA, then I would be a seller and push this market all the way down to at least the $2.45 level, possibly even the $2.25 level. All things being equal, this is a market that I think will continue to suffer the seasonal effect of warmer temperatures and oversupply. Yes, there is the reopening trade that could keep this a little bit more levitated than some of the other years in the past, due to the fact that the economy has been locked down.

At this point, I do believe that the market continues to see the previous uptrend line as resistance as well, so quite frankly it is only a matter of time before the sellers come in and overwhelm again. As temperatures warm up in the spring, that will drive down demand, and therefore should drive this price much lower. To the upside, if we were to take out the $2.70 level, then I will simply sit on the sidelines and wait for an exhaustive candle to start shorting above.

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.

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