Natural Gas Price Forecast – Natural Gas Markets Gap Higher And Then Give Up GainsNatural gas markets gapped higher during the trading session on Wednesday to kick things off but then turned things right back around in order to fill the gap. At this point, the market then tested the 50 day EMA.
Natural gas markets gapped a bit higher to open up the trading session on Wednesday but then turned around to fall significantly to fill the gap. That being said, the 50 day EMA has offered a bit of support and it looks as if the market is simply trying to figure out where to go next. That being said, I have a hard time believing that the natural gas markets will rally for the longer term, as the demand for natural gas is going to drop off of a cliff over the next several weeks. After all, even though there are some hopeful signs of the coronavirus infection rate flattening a bit in the United States, the reality is that warmer temperatures will continue to be a major problem for natural gas as well. This point, it’s hard to imagine where the true demand will come from.
NATGAS Video 09.04.20
That being said, there could be a slew of bankruptcies coming in those bankruptcies will more than likely offer less supply and that might be the reason the market turns around and goes higher. That being said, until that happens it’s difficult to get overly bullish. In fact, I believe that the $2.00 level should be rather resistive and difficult to break through. If we do, then the market will probably have more of a relief rally towards the $2.20 level. At this point though, I’m looking to fade signs of exhaustion as the latest move has been a bit parabolic, and countertrend.