Natural Gas Price Forecast – natural gas markets press resistance

Natural gas markets tried to rally during most of the trading session on Thursday but continues to struggle above the $3.50 level. Because of this, I think it’s only a matter time before market participants roll over again, as the $3.75 level has been so massive in its resistance. I think if we can break down below the 20 day EMA, pictured in green on the chart, then I think we will go looking to fill the gap underneath. Natural gas markets are oversupplied, but obviously we have seen a cold snap in the northeastern part of the United States that will drive up demand.

NATGAS Video 18.01.19

The $3.75 level above being broken to the upside is a very bullish sign, and I think would set up another fight at the $4.00 level, an area that I’m even more interested in trying to trade. I would be more than willing to short at that area, and therefore I think that this is a “sell only” type of market. The $3.00 level underneath is a massive floor at the moment, and I do think that it’s going to take a lot of momentum to break down through that level. If we do, that opens the door to the $2.75 level, possibly even the $2.50 level given enough time. All things being equal, I do believe that we will eventually see the sellers overwhelm.