Natural Gas Price Forecast – natural gas markets continue to grind

Natural gas markets rallied a bit during the trading session on Thursday but gave back most of the gains. Ultimately, there is a massive support level underneath at the $2.75 level that should continue to offer support and therefore I think if we broke down below it we could go down to the $2.50 level. I suspect that we are probably going to get a short-term bounce though, simply because we have failed to pick up any momentum.

NATGAS Video 01.02.19

At this point, I believe that a rally is probable, but it should be a nice opportunity to start selling again, reaching towards the 20 EMA, which is pictured on the chart as green, and then of course we have the 50 day EMA above as well which is pictured in red. I think at this point; the market is simply selling rallies as there is a lot of negativity when it comes to the massive oversupply of natural gas in both the United States and Canada. Quite frankly, natural gas is abundant, it is very likely that the oversupply causes a lot of issues above. I see the three dollars level as massive resistance, and I also see $3.25 as massive resistance. In general, I’m looking for exhaustive candles above the start shorting. Or there is the possibility that I can start shorting this market if we get a daily close below the $2.75 level, but quite frankly shorting those rallies is much more comfortable for me. With the jobs number coming out on Friday, it’s very likely that this market should be avoided until after that figure comes out.