Natural Gas Price Forecast – Natural gas markets rallyNatural gas markets rallied a bit during the trading session on Wednesday, as a bit of a relief rally has come to pass. At this point time the, it is still very much in negative and bearish market.
Natural gas markets try to rally a bit during the trading session on Wednesday, but struggled at the 50 day EMA or just below it. At this point in time I think there’s a little bit of upside left, but only a few cents. I’m looking forward short-term exhaustive candles on may be the 30 minute or even the 15 minute chart to start selling again. I believe that the $2.70 level be a bit too resistive for natural gas to get above.
NATGAS Video 30.05.19
To the downside the $2.50 has been a massive significant support level, as I have been saying for several weeks now. I don’t know that we necessarily break down below there but we did it would be very catastrophic for the natural gas markets and almost undoubtedly send this market looking towards the $2.25 level after that, maybe the $2.00 level. To the upside, a break above the $2.70 level as me looking at the $2.80 level as my next potential selling opportunity. We are in the wrong time of year to expect some type of longer-term rally, and therefore I like the idea of simply punishing strength every time it appears as it will be fleeting at best. If you want to buy natural gas, start thinking about it in November because there’s a seasonal rally that almost always happens. In this environment of oversupply, it’s difficult to imagine a scenario where natural gas takes off for the longer-term. That being said, I of course will keep you up-to-date here at FX Empire if it changes.
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