Natural Gas Price Forecast – Natural Gas Markets Continue To Show Weakness

Natural gas markets initially tried to rally during the trading session on Thursday but found the 50 day EMA as resistance. Furthermore, the $1.80 level offers resistance as well, and therefore it’s likely that we will continue to pay attention to that important technical indicator. If you look back on the chart, you can see that several times we have tested the 50 day EMA and found plenty of selling. At this point, the market continues to show signs of exhaustion every time it rallies, especially as the market had rallied so significantly into the 50 day EMA.

NATGAS Video 13.04.20

To the downside, the $1.60 level should offer plenty of support, and of course makes it a very nice target. The support level extends down to the $1.50 level, and therefore I think there is a general range of buying underneath. Keep in mind that the natural gas markets will continue to suffer from oversupply, but there is hope of a long slew of bankruptcies coming in the United States that could bring down production. Quite frankly, there simply far too much natural gas to elevate price. Beyond that, we also have warmer temperatures coming in that will of course work against the value of natural gas as demand will fall through the floor.

To the upside, if we were to turn around and rally, I believe that the $1.80 level will offer resistance, just as the $1.90 level well. Beyond that, the $2.00 level is a massive resistance barrier, and therefore I think it would be very difficult to get above there.