Natural Gas Price Forecast – Natural Gas Markets Fail At First Sign Of Resistance
Natural gas markets have initially tried to rally towards the $2.20 level, which had previously been supportive. “Market memory” dictates that there should be a bit of selling pressure there and that’s exactly what we have seen during the trading session. We are currently trading in the overall range between $2.20 on the top and the $2.00 level on the bottom. At this point, the market is likely to continue to see a lot of sluggish behavior in this general vicinity as natural gas is trying to build up a bit of momentum before trying to break out. That being said though, it is going to be difficult to buy this market until we break above the $2.20 level, which would be the first sign of real strength. Even then, it’s probably going to be difficult to hang on to the trade for any significant amount of time, because quite frankly the 50 day EMA hovering around the $2.35 level also cause a certain amount of resistance.
NATGAS Video 09.01.20
To the downside, if we were to break down below the $2.00 level it would be rather catastrophic for natural gas. Ultimately, this is a market that I think continues to see a lot of trading in this general vicinity, but we are at extreme lows. It’s very difficult to imagine that this market falls apart below that level, at least this time year. Rallies at this point should offer nice selling opportunities as they have all year. It’s odd to say that you can sell natural gas in the dead of winter, but that seems to be the case.
Please let us know what you think in the comments below