Natural Gas Price Forecast – Natural Gas Markets Continue to Drift LowerNatural gas markets trying to recover during the trading session on Wednesday but gave back the gains to form a bit of an inverted hammer. We are sitting at the bottom of the massive gap, so things will get interesting from here.
Natural gas markets have rallied during the trading session on Wednesday, but then gave back the gains in order to form a little bit of an inverted hammer. The inverted hammer of course is a potential signal to start trading again, and if we can break above the top of it would show resiliency for the buyers. At this point, the market is highly likely to go looking towards the 50 day EMA above if it can break above the top of that high. Otherwise, then we will test the $1.60 level which has been massive support.
NATGAS Video 14.05.20
The real question is whether or not there is going to be enough demand for natural gas to take off to the upside quite yet or if we have to wait for the massive amounts of bankruptcies that are almost sure to happen in the short term. Longer-term, there needs to be a complete restructuring of the industry. A break above the top of the candlestick is a very bullish sign, which could send this market much higher but as we continue this massive broadening pattern, which quite often is the end of a trend. All things being equal, this is a market that is very choppy to say the least, and as a result it is very likely that we will continue to see extreme amounts of volatility, but it does look like we are getting a bit “long in the tooth” when it comes to the downside overall. Using CFD markets will be the safest alternative.
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