Natural Gas Price Forecast -natural gas markets fall on FridayNatural gas markets broke down a bit during the day on Friday, reaching towards the $3.25 area again. The $3.25 level of course is where we had seen a gap previously, so it should offer a bit of support.
Natural gas markets broke down a bit during the trading session on Friday, as we continue to see weakness in the natural gas markets. The 50 day EMA is above and turning lower, so I think that any rally at this point will probably show signs of exhaustion. If we were to break above the 50 day EMA, we could take off to the $4.00 level. This is an area that was previous support, so it should now be resistance. Ultimately, I like fading rallies as natural gas markets are most decidedly bearish but we also may have got a bit ahead of ourselves in the short term. Because of this, we will probably need to let the market bounced a bit before you get involved.
NATGAS Video 31.12.18
Granted, I think the $3.25 level could cause a bit of a bounce but at this point we are most decidedly rolling over and of course we have massive amounts of supply coming online again. As we got the massive surge higher, fracking companies threw supply as fast as it would be bought. After all, it’s been a long time since fracking companies have been able to sell natural gas at $4.55. Ultimately, I think that we will probably break down to the $3.00 level, but we may need to build up enough momentum to make that happen. I don’t have any interest in buying this market even though I fully anticipate the bounces will come quick and hard. Take advantage of Shorty opportunities near the 50 EMA.