Natural Gas Price Forecast – Natural gas markets rallied slightly on Monday

Natural gas markets initially rallied during the trading session on Monday, but gave back some of the gains as we reached into the north American session. The 50 day EMA is just above, and that of course causes a significant amount of resistance. As we gave back quite a bit of the gains to form a bit of a shooting star. If we can break above the top of that in the 50 day EMA, then we could go to the $2.75 level.

NATGAS Video 14.05.19

Ultimately, if we break down below the bottom of the daily candle stick, then it could send this market down towards the $2.50 level which is major support on the longer-term charts. By all means, if we were to break down below there I think that the market could really start to unwind, perhaps sending the market down to the $2.25 level. Overall, the market is bearish so therefore signs of exhaustion will continue to be sold off by the prudent trader.

All things being equal, this is a market that I have no interest in buying, because quite frankly we are oversupplied and should continue to be a bearish market longer-term. That being said, the seasonality also works against the idea of higher natural gas prices as well. Expect a lot of volatility, but I still think it’s easier to sell this market than to try to buy it.

Please let us know what you think in the comments below