Natural Gas Price Forecast – Natural Gas Markets Give up Gains

The natural gas market rallied a bit during the trading session on Friday, reaching towards the $2.00 level. With that being the case, the market is looking incredibly soft for the short term, and as a result it is likely that the market will probably continue to see a lot of volatility due to the fact that the natural gas oversupply is way out of control. Having said that, there are a lot of bankruptcies waiting to happen and therefore we will eventually see destruction of supply by it is very nature.

NATGAS Video 27.04.20

That being said, it looks as if the market is going to try to break out above the two dollars level but there are quite a bit of selling pressures above. To the downside, there is a massive gap underneath that people will be looking at. That gap will more than likely get filled, but if it does end up showing support, then it could be the beginning of a bigger move to the upside. On the other hand, if we turn around and simply rally it is likely that the market will try to take out the 200 day EMA above. Nonetheless though, I suspect that this is a market that still has a lot of negativity baked into it, so I do think that the next move is probably a bit lower. The question is what happens when we finally hit the gap underneath? The 50 day EMA is sitting right in the middle of the gap, so that of course could come into play as well. Notice that the 50 day EMA has been very resistive as well as support in the past.