Natural Gas Price Forecast – Natural Gas Markets Pull Back
Natural gas markets have broken down a bit during the trading session on Wednesday, as the $2.00 level is significant resistance. That is an area we have sold back from, and you should also keep in mind that we ended up forming a shooting star during the previous session on Tuesday. To the downside, the 50 day EMA underneath should offer support, and I also believe at this point it is likely that the gap underneath should offer plenty of support, especially near the $1.70 level. With that being said, I do think that we probably have more downside risk than up, if for no other reason than to fill the gap.
NATGAS Video 30.04.20
To the upside, if we can break above the 200 day EMA then the market starts to look at the longer-term uptrend. I do not think we are there quite yet though, although I am the first person to admit this looks a lot like a basing pattern just waiting to happen. If this is true, then the market is highly likely to continue to see buyers on dips from a longer-term standpoint as we would see a lot of bankruptcies coming out of the natural gas sector, something that has been needed for several years now. Quite frankly, there is just too much supply out there to have this market rally without some type of cleaning of the overextended market that we see all over North America and beyond.