Natural Gas Price Forecast – Natural Gas Markets Drift Lower

Natural gas markets gapped lower to kick off the week as it looks like we are going to head back towards the $1.80 level. Short-term analysis suggests that there it could offer a bit of support, but I do think that it’s very possible that we break down below there. After all, the oversupply issue of natural gas continues to be a major problem, and therefore it’s likely that the trend should continue. I think that at this point in time the $2.00 level above is massive resistance, and it should be due to the fact that it is a large, round, psychologically significant figure.

NATGAS Video 25.02.20

At this point in time, the 50 day EMA is starting to reach towards the $2.00 level. That makes it even more resistive on any type of rally. Furthermore, if the market was to break above there think the $2.20 level is the next major resistance barrier also. As long as the market stays below the $2.20 level, I think that we have an opportunity to short it every time it rallies. Furthermore, the temperatures in the United States are about to start getting warmer, and therefore it’s very likely that the demand is going to drop even further. If we were to break down below the most recent low, then the market is very likely to reach towards the $1.60 level. At this point, we need to see a lot of bankruptcies in the United States as far as drillers and suppliers are concerned, and then at that point we might be able to start buying. Until then, this is a market that cannot be bought under any circumstance.