Natural Gas Price Forecast – Natural Gas markets continue to grind

Natural gas markets went back and forth during the trading session on Wednesday, as we see a lot of volatility in this area. The market has paid attention to the $2.50 level more than once, as it is a major “floor” in the market. I think that at this point we are probably going to see a bit of a bounce, as the last couple of days have been slightly bullish. Once we can clear the $2.75 level, I suspect that there will be quite a bit of buying, or perhaps short covering more than anything else.

NATGAS Video 21.02.19

If we can break above the $2.75 level, I will then start looking for resistance near the $3.00 level, the scene of a major gap. Signs of exhaustion should be selling opportunities, and then of course the 200 day EMA will cause resistance as well. In general, it’s likely that the market will try to recover some of the major losses, but I do think that given enough time we should have an opportunity to sell natural gas at higher levels. I have absolutely no interest whatsoever in trying to sell this market at these extreme lows, nor do I have any interest in trying to buy this market and hope of this bounce. Even though I fully anticipate that this bounce will happen, I don’t think that the overall attitude of the market will allow it to last very long. Looking at this chart, I think that Patience is what’s needed and what will give you an opportunity to make profits.

Please let us know what you think in the comments below