Natural Gas Price Forecast – Natural Gas Markets Fell at 50 Day EMA

Natural gas markets have gone back and forth during the trading session on Monday as we continue to see a lot of volatility and financial markets overall. Ultimately, this is a market that continues to see a lot of volatility due to the fact that we are moving on the latest weather reports, which of course continues to be very difficult to gauge, but we are trading the January contract at the moment so there is going to be a certain amount of demand due to the fact that the colder temperatures in the United States continue to cause demand.

NATGAS Video 22.12.20

The $2.60 level underneath is supportive, just as the 50 day EMA is going to be resistance. The $2.80 level above there would be the next target, followed by the $3.00 level later. I think the gap above there probably causes a certain amount of resistance, but I think a move towards that area makes quite a bit of sense. I think we have “one more hurrah” left in the market this winter, before we start selling again, especially with the spring contracts meaning that the demand will drop quite a bit.

Ultimately, the 200 day EMA would be the target once we get exhausting, but in the short term I think the buyers will be controlling things. This be especially true if the US dollar gets hit, although the currency aspect is not the biggest player in this market. Regardless, longer-term we still have plenty of oversupply, so the easier and longer-term trade is to fade spikes to the upside. It comes down to your time horizon more than anything else.

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