Natural Gas Price Forecast – Natural Gas markets continue slight bounce

Natural gas markets initially fell during trading on Friday but have recovered a bit as traders went home for the weekend. This makes quite a bit of sense as people don’t want to be caught in the futures markets at the open if something happened. Ultimately, I think that a rally from here is likely, but only because we are at such an oversold condition. With that in mind, I believe that the resistance above will continue to be a major issue, and therefore I’m simply looking to sell this market as it gets a little overbought.

NATGAS Video 12.08.19

There’s no reason over complicate the trade. As you can see on the chart, the 50 day EMA has been crucial for resistance and should continue to be so. It is because of this that I think anything close to that red line on the chart would be a nice selling opportunity. However, I don’t even know that the natural gas markets can break above there. The $2.20 level probably causes a bit of resistance as well, and it should be noted that there is a shooting star at that level as well, as it shows signs of extreme resistance. To the downside, the $2.00 level would be a target, as it is a large, round, psychologically significant figure, or for that matter a nice support barrier. If we were to break down below there, natural gas would collapse even further. I have no interest in buying this market.

Please let us know what you think in the comments below