Natural Gas Price Forecast – Natural Gas Markets Quiet on TuesdayNatural gas markets did very little during the trading session on Tuesday as we continue to hover near the $1.85 level. There are plenty of reasons to think that natural gas should continue to drop, but we are at very overly extended levels.
Natural gas markets have shown signs of stabilization during the trading session on Tuesday, or perhaps just a general lack of interest. That is a good sign though considering that the markets have collapsed for so long, so stabilization is the closest thing that you can hope for right now to see whether or not the market can turn things around. I would not hold my breath for that though, because quite frankly the oversupply of natural gas will continue to be a very long term problem. Until we get a slew of bankruptcies in the United States as far as drilling and fracking is concerned, it’s difficult to imagine a scenario where natural gas can pick up from here. I believe that the $1.80 level continues offer support, but we have broken through there before. Given enough time, we could even go looking towards the $1.67 level underneath which is a historically important level.
NATGAS Video 26.02.20
To the upside, the $2.00 level offers a lot of resistance, as it is a large, round, psychologically significant figure. Furthermore, the 50 day EMA sits just above there, and therefore one would have to think that there is a lot of selling pressure just waiting for the market to try to reach and break above there. For that, even if we were to break above that level there should be plenty of resistance near the $2.20 level as well. This is a long term downtrend, and should continue to be a market that you should be selling.
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