Natural Gas Price Forecast – Natural gas markets continue to drift lowerNatural gas markets fell again during the trading session on Tuesday, breaking down below the $2.30 level and by extension the 61.8% Fibonacci retracement level as well. This is obviously a very negative turn of events but there is still support underneath.
Natural gas markets have fallen a bit during the trading session on Tuesday, breaking below the $2.30 level and by extension the 61.8% Fibonacci retracement level. That being the case it is typically a very negative sign but at this point we are starting to think about trading the colder months in the year and that almost always means higher prices. Granted, most of the United States hasn’t seen overly cold weather, but it is most certainly coming soon. With that, I have been talking about the $2.25 level being a potential support level as well, so as I stated yesterday, we need to see the correct daily candle stick in order to take advantage of this run.
NATGAS Video 02.10.19
At this point, it’s very difficult to short this market this time a year, although the temperatures haven’t been cooperating. They will soon enough and the pop is almost always brutal. There is a concern about the global growth right now, and that of course will possibly drive down demand for natural gas as well. Don’t get me wrong, there is more than enough natural gas out there to satiate demand for the longer-term, but there is a certain amount of cyclical bullish pressure coming down the road. To the upside, the 50 day EMA will cause resistance, just as the $2.50 level will. Once this market breaks above the 200 day EMA again, that would be a very strong sign that we are heading towards the $3.00 level even the $3.50 level after that.
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