Natural Gas Price Forecast – Natural gas markets failed to hold onto gains

Natural gas markets initially tried to rally during trading on Tuesday but gave back the gains to form a bit of a shooting star. I find this a bit surprising, because quite frankly we have drifted higher only to see a real lack of follow-through to the upside. There is a gap that sits just below the $3.00 level that has yet to be filled, and it’s what I’m waiting for to start shorting. However, it looks as if we may struggle to even get to that level.

NATGAS Video 06.03.19

The 50 day EMA is just below the $3.00 level, painted in maroon. After that, it’s very likely that the 200 day EMA at $3.13 will cause significant resistance as well. Either way, I have no interest whatsoever in buying natural gas as it is far too oversupplied and is definitely in a bear market. This bounce has been needed, because we had reached such extreme lows. However, there is no real fundamental reason to believe that natural gas is suddenly going to be a bullish market, so simply wait for my opportunity to sell as it comes. I suspect that the $2.50 level will be targeted again, as it is significant support on longer-term charts, not just because of recent action. I do not think that we are going to break down below there however, just that we will continue to bounce along this general vicinity.

Please let us know what you think in the comments below