Natural Gas Price Forecast – Natural gas markets continue to test supportNatural gas markets have fallen a bit during the trading session on Wednesday to test the significant support level based around the $2.25 level. This is an area that of course has previously been resistive and should now employ a “market memory” to support the market.
Natural gas markets initially tried to rally during the trading session on Wednesday but found enough resistance above the turn around and break towards the $2.25 level. This is an area that shows a significant amount of support that I believe extends down to at least the $2.20 level. Ultimately, that is a market that continues to see a lot of noise involved in it, but I do think that it’s only a matter time before buyers turn around and start pushing this market higher. What we need to see is a weather forecast coming out of the United States showing colder temperatures, that could send demand much higher. That being said, when the move does happen, it will be brutal as it is most winters.
NATGAS Video 10.10.19
Looking at the chart, there is a significant amount of resistance above at the 50 day EMA, and then above there it’s likely that the $2.50 level would offer a bit of resistance, followed by the 200 day EMA. That being said though, it’s likely that the market will continue to slice through all of those levels. This move can and will be brutal, but obviously it has not started yet. Unfortunately, it’s difficult to trade natural gas without knowing the short term or even medium-term weather forecasts for places like New York City and Boston. Technically speaking though, we are getting very close to that time a year typically we will see an impulsive candle that sends this market higher with good volume.
Please let us know what you think in the comments below