Natural Gas Price Forecast – Natural gas markets continue to find sellersNatural gas markets initially tried to rally during the trading session on Wednesday but continues to find plenty of selling pressure above as the 50 day EMA has been rather reliable. At this point, I think that the market probably continues to drift a bit of lower given enough time.
The natural gas markets initially tried to rally during the trading session on Wednesday, reaching towards the 50 day EMA. At this point, the market looks very likely to continue rolling over, as the 50 day EMA has been so crucial. Beyond that, it’s just below the trend line, and therefore it’s likely that we will continue to see plenty of resistance above. Beyond that, there is a huge amount of bearish pressure out there as we have so much in the way of oversupply.
NATGAS Video 22.08.19
Looking at the chart, I believe that we could go down towards the $2.00 level underneath, which is a large, round, psychologically significant figure. At this point, I think that it would be very difficult to break down through there, but if it did it’s very likely that we could go to the $1.75 level. Ultimately, natural gas traders continue to show a lot of negativity in this market as it is the wrong time of year to expect explosive moves to the upside. However, once we get through the next couple of months, we will start to trade for higher demand seasons, and then of course we can get a bit of a bounce. Until then though, this market looks hell-bent on trying to get back down towards the $2.00 level, but keep in mind that the easiest money has already been made, so this is more of a gentle grind lower than anything else.