Natural Gas Price Forecast – natural gas markets continue to show resistance

Natural gas markets initially tried to rally during the trading session on Thursday but struggled at the 50 day EMA. Beyond that, we have the $4.00 level just above that offering psychological and structural resistance, and I think that rallies still continues to be an opportunity to short this market. There are plenty of natural gas suppliers out there willing to jump into this market higher levels, and as we are starting to step away from the coldest time of year when it comes to futures trading, it makes sense that natural gas markets would probably struggle.

NATGAS Video 21.12.18

Ultimately, I think that we could go as low as $3.00, but probably towards the $3.25 level underneath. At this point, I continue to fade rallies as they offer plenty of opportunities. Ultimately, we have already seen the highs of the year and I think that it’s only a matter of time before we get plenty of reason to unwind this trade further. Quite frankly, there are signs that the 50 day EMA is rolling over as well, so it makes sense that we continue to see more traders coming into hammer these higher prices. For quite some time, the $4.00 level has been very resistive, and now I think it will regain that scene again. I think that the trend has definitely broken to the downside from the previous symmetrical triangle, and everybody in the world is now watching the same thing.