Natural Gas Price Forecast – Natural Gas Markets Harbor 50 Day EMA

Natural gas markets have gone back and forth during the trading session on Thursday as we continue to hover right above the 50 day EMA. Ultimately, the $2.80 level above is resistance, and I think that if we rally from here, I will be looking for signs of exhaustion that we can take advantage of the start selling again. Yes, there is a winter storm coming to the northeastern part of the United States, but I think any reaction to that will be sold into after a couple of days. This is because natural gas tends to be very short-term focus, and as a result I think it is only a matter of time before the start focusing on spring again.

NATGAS Video 29.01.21

As demand drops with warmer temperatures, it makes sense that the price of natural gas falls as a result also. I believe it is too late in the year to get cute with the idea of trying to go long, and as a result the oversupply of natural gas will continue to be a major headwind for pricing power. I do believe that eventually we continue to sell off, and therefore am simply waiting for a nice exhaustive candle that I can get involved with. The 200 day EMA underneath is sitting at the $2.49 level, and therefore it is likely that we would target that initially. After that, then it is likely we go down to the $2.30 level, which has offered quite a bit of support in the past. With this being the case, the market is likely to break through that level as well and eventually go down to the $2.00 level.

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