Natural Gas Price Forecast – Natural Gas Markets Dropped to 50 day EMA

Natural gas markets initially tried to rally during the trading session on Friday, but then gave back the gains to break below the 50 day EMA. Towards the end of the day, we are starting to see signs of support, as the $1.80 level is the beginning of the gap underneath that should continue to at least support the market to a point. The natural gas markets have been choppy and rallying for some time, and the technical analysis is very messy to say the least. Nonetheless, I do believe that we are going to see a lot of noise out there when it comes to the markets, as there are a lot of drillers getting ready to go under.

At this point, the market is more than likely going to try to build base, and if we are in fact trying to change the overall trend, this is a longer-term move, not something that happens overnight. If we were to break down towards the $1.60 level and through it again, that would of course be catastrophic but at this point it is becoming obvious that there are buyers underneath.

NATGAS Video 11.05.20

To the upside, if we can clear the 200 day EMA it is highly likely that the trend will change for most traders, and we will start to see the markets move higher over the longer term. If we do get a lot of bankruptcies, that will finally bring down the oversupply of natural gas in the market.