Natural Gas Price Forecast – Natural Gas Markets Continue to Show Resiliency

Natural gas markets have been initially sold off during the trading session on Thursday but then recovered as natural gas inventory figures came out as expected. Because of this, it is highly likely that the market is going to continue to see a bit of stabilization, as the oversupply may be starting to abate slightly. If that is the case, then we can start to build the case for the market turning around and showing signs of life again.

NATGAS Video 01.05.20

The two point to zero dollars level above will be resistance, just as the $2.10 level will be as it was the most recent highs. The 200 day EMA above there continues to cause problems, and therefore I think it is only a matter of time before we do get a pullback on any bounce. However, to the downside we still have that gap that offers plenty of support, so I think that the 50 day EMA and that gap are probably going to win the day. Short-term buying opportunities may continue to present themselves, in what has been an extraordinarily slow rate of change when it comes to the price of natural gas. If we can finally break above the 200 day EMA, then the entire trend will change, and it will continue to be a “buy on the dips” type scenario.

I do think that things are starting to change, perhaps with the idea of bankruptcies finally coming and disrupting the oversupply situation that we have seen for so long. That being said, it is going to be a long fight, and of course temperatures will not help, but the market does try to front run these events, so I believe we are finally seeing natural gas show signs of strength again.