Natural Gas Price Forecast – Natural Gas Markets Fell at Resistance

Natural gas markets initially pulled back a bit during the trading session on Tuesday, but then shot up in the air to reach towards the $2.00 level again. That is an area that attracts a lot of attention due to the fact that it is of course a large, round, psychologically significant figure and an area where we had pulled back from, or just above I should say, recently. The 50 day EMA looks as if it did offer a bit of support, but there is still a gap underneath it needs to be filled.

NATGAS Video 29.04.20

Looking at the chart, this means that we could go as low as $1.70 to simply fill the gap. On the other hand, if we were to break above the 200 day EMA, which is currently sitting at the $2.13 level, then it would be the beginning of something rather big, and quite frankly we are not that far away from seeing this market trying to turn around, as I believe we are in the midst of some type of bigger basing pattern. This is due to the massive amount of bankruptcies that we are more than likely going to be seeing down the road. Looking at this chart, I believe that longer-term traders are starting to look towards the future and thinking to the upside. Having said that, if you are going to look towards the longer-term chart, you are going to have to be extremely cautious and keep your position size rather small as short-term pullbacks are likely.