Natural Gas Price Forecast – Natural Gas Markets Pressing Major Resistance

Natural gas markets went back and forth during the trading session on Tuesday, as we continue to see a lot of volatility in this market. The natural gas markets and rally towards the $2.00 level, an area that has been the top of a trading range for some time. Ultimately, the level should be a major resistance barrier that is going to continue to cause major problems. If we do break above the $2.00 level, then it’s likely that the market may get a little bit of a boost from here. I will point out that although I am extraordinarily bearish when it comes to natural gas, this is starting to look more and more like some type of basing pattern.

NATGAS Video 22.04.20

Furthermore, and only adding to the confusion, Donald Trump has tweeted that he is directing members of the Treasury Department to look into ways to protect and perhaps even support the gas and oil industry in the United States. In other words, keep them afloat. The biggest problem with that is we don’t know what the stipulation will be as far as the idea of production cuts or how the US will go about taking on this major task. Ultimately, this is a market that should continue to be bearish in general, but the 50 day EMA underneath holding as support would be a buying opportunity as it could signal that we are finally putting in that bottom. If we break above the $2.00 level the next target will be the 200 day EMA. Hang onto your hats, it’s about to get volatile.