Natural Gas Price Forecast – Natural Gas Markets Look SluggishNatural gas markets have done very little during the trading session on Thursday as we continue to hang around the $2.80 level.
Natural gas markets have gone back and forth during the course of the trading session on Thursday as we continue to see the $2.80 level cause a little bit of action. Ultimately, this market is also sitting right around the 50 day EMA as well, so that of course is something that we need to pay close attention to. If that is going to be the case, then it makes quite a bit of sense that the markets will be jittery in the short term. Longer-term though, if you follow me here at FX Empire, you already know what my thought process is.
NATGAS Video 05.03.21
I do believe that it is only a matter of time before breakdown and I like looking at short-term rallies that show signs of exhaustion in order to get short of this market. After all, temperatures are starting to warm up quite a bit and therefore it should drive down demand significantly. Because of this, I like the idea of pushing towards the $2.40 level, an area that has previously been supported before. The 200 day EMA sits at the $2.57 level, but I think it will be sliced through as it had been previously. I have no interest whatsoever in trying to buy this market, at least not this time of year. I do believe that we have seen the highs, and quite frankly the only reason we had this shot higher recently was the storm in the central part of the United States shutting down production. It also drove demand higher for the short term, but longer-term we will continue to see oversupply cause major issues in this market.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For a look at all of today’s economic events, check out our economic calendar.