Natural Gas Price Forecast – Natural gas markets quiet during Tuesday sessionThe natural gas markets were relatively quiet during the trading session on Tuesday, as we continue to hang around the $2.20 level. The 50 day EMA is just above, and that continues to attract a lot of attention as well.
Natural gas markets have rallied slightly during the trading session on Tuesday but continues to see a lot of trouble just above in the form of the 50 day EMA. The 50 day EMA has caused a significant amount of resistance more than once in this pair, as the market continues to be very technically driven. Keep in mind that the market is very negative and it should be considering just how the market has been struggling over the last couple of years. Quite frankly, the natural gas markets continue to be heavily oversupplied, and that should continue to be a major problem.
NATGAS Video 21.08.19
If we do break above the 50 day EMA, then I think the next target above for selling pressure is probably going to be closer to the $2.50 level. I do think that eventually we get a nice rally in the natural gas markets but clearly it’s not able to do so quite yet. To the downside, I see the $2.00 level as an area that will be targeted due to the round figure. It’s an area that I think needs to be tested again, and quite frankly it wouldn’t surprise me at all to see it hold. If we do break down below there though, it’s likely that the market goes down to the $1.75 level. All things been equal though, I think we are a couple of months away from being able to turn things around and start going long as we have to wait for colder temperatures in the northern hemisphere.
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