Natural Gas Price Forecast – Natural Gas Markets Gap Higher To Kick Off The Week

Natural gas markets gapped higher to kick off the trading week on Monday, clearing the $1.60 level handily. By doing so it looks as if the market is going to continue to see a lot of back and forth, but I see plenty of reasons above to think that the market is probably going to sell off given enough time. The 50 day EMA is currently sitting around the $1.80 level, so ultimately this is a market that should find exhaustion that you can start selling. With that in mind, I’m looking for some type of negative or weak action near the $1.80 level as it is an area that should cause a lot of troubles.

NATGAS Video 07.04.20

That being said, if we do break above there I see even more resistance at the 2.00 dollars level, an area that is going to continue to be crucial due to the fact that it is not only a resistance barrier, but it is also a large, round, psychologically significant figure that will attract a lot of headlines. If that’s going to be the case one would assume there would be even more sellers in that area as it would attract a lot of noise. With that being the case, the market is likely to see sellers on rallies. I have no interest whatsoever in trying to buy natural gas, because quite frankly the demand for natural gas is completely shot from a longer-term standpoint. Warmer weather will of course have a major influence on whether or not there is going to be demand, so there is no need to trying to get involved in a countertrend move.