Natural Gas Price Forecast – Natural Gas Markets Gap Lower To Kick Off The WeekNatural gas markets gapped lower to kick off the week, reaching down towards the $1.80 level. This is an area that has offered a significant amount of support previously, and it now looks as if we are trying to break this market down even further.
Natural gas markets have gapped lower to kick off the week on Monday, to reach down below the 1.80 level at one point. This of course is a very negative sign, and therefore it’s likely that we continue to drop below. That being said, we are most certainly in an extremely low level, so therefore a little bit of caution should be taken before simply jumping in with both feet and shorting. That being said though, I do think it’s only a matter of time before we go looking towards the $1.60 level underneath, which is a massive level from a longer-term support and the most recent bottoming of the market.
NATGAS Video 11.02.20
That being said, the short term it looks like rally should be selling opportunities, and therefore we will probably make an attempt to fill the gap, but somewhere near the $1.85 level the sellers should return on any pot. Furthermore, the $1.90 level offered resistance and of course so does the $2.00 level. At this point, the 50 day EMA is also starting to reach towards the $2.00 level, giving even more in the way of resistance going forward. Ultimately, this is a market that is very bearish because of an oversupply issue that continues to be a major driver of price. It’s not until we get the soon to happen slew of bankruptcies in the United States that we will get a driving force to get rid of the massive amount of oversupply that we have. With that, continue to sell rallies.
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