Natural Gas Price Forecast – Natural Gas Markets Gap Higher To Kick Off The WeekNatural gas markets have gapped higher to kick off the trading week on Monday, as the oversold condition has seen a little bit of relief. Perhaps the slightly shrinking coronavirus numbers have people thinking that there could be more demand.
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.