Natural Gas Price Forecast – Natural gas markets find buyers on FridayNatural gas markets fell a bit during the trading session on Friday but found enough support at the $2.55 level II turn back around, at least short term.
Natural gas markets initially pulled back a bit during the trading session on Friday but as you can see we have rallied a bit, reaching towards the $2.60 level. There is a supportive field to this move, and I think at this point you are probably better advised to step to the sidelines and look for a selling opportunity at a higher level. Remember, we are in the wrong time of year for the natural gas markets to rally for longer-term moves as there is much less demand this time of year.
NATGAS Video 27.05.19
Ultimately, the 50 day EMA above should offer resistance near the $2.67 level, which I think it extends to the $2.70 level. Any sign of exhaustion in that area should be a nice selling opportunity. If we can break above the $2.70 level, then we could go to the $2.90 level which would be a huge resistance barrier. The $2.50 level underneath is massive support and essentially the “floor” in the marketplace, so I think as long as we can stay above that level we will continue to undulate back and forth with a slightly negative bias. However, if we were to break down below the $2.50 level, the market will unwind rather drastically and probably reach the $2.25 level quickly.
I have no interest in buying natural gas at this point in time, as this is a major downtrend that has been in effect. Ultimately, sometime in November I will start buying as the market tends despite that time of year due to higher demand.
Please let us know what you think in the comments below