Natural Gas Price Forecast – Natural Gas Markets Look TiredNatural gas markets have gapped just a bit higher to kick off the trading session on Thursday but turned around to show signs of exhaustion yet again.
Natural gas markets have gapped just a bit higher during the trading session on Thursday but turned around to show signs of exhaustion and weakness before it was all said and done. Quite frankly, this is a market that is probably running on borrowed time due to the fact that we are getting rather close to the idea of warmer temperatures in the United States and the northern hemisphere in general, so that obviously could be an issue when it comes to demand. Ultimately, the 50 day EMA is sitting in the same area, and that could cause a certain amount of interest in the market on both sides, but if we break down below it then that would be a sell signal for certain traders.
NATGAS Video 15.01.21
Ultimately, I think there is a lot of resistance between the $2.80 and the $3.00 level. I am looking to sell any attempt to break out and especially ones that are followed by another exhaustive candle. It is obvious to me that there is a lot of selling pressure above, and with the warmer temperatures coming sooner rather than later, that is a killer when it comes to natural gas markets. We are in the midst of the February contract, and will be trading the March contract before you know it. Once you start talking about March contracts, then you start to talk about a major drop in demand. I have no interest in buying natural gas, it is far too late in the year at this point to be interested.
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