Natural Gas Price Forecast – natural gas markets rallyNatural gas markets rallied a bit during the trading session on Tuesday, but quite frankly this was to be expected after we collapsed. I don’t look at this is an opportunity to start going long, quite the opposite.
Natural gas market has rallied rather significantly during the trading session on Tuesday, filling the gap from a couple of days ago. Quite frankly, it doesn’t really matter though because we have broken down so much that this rally should only invite more selling as traders who have been long and perhaps punished over the last couple of days will be more than happy to get out of the market at these higher levels. Beyond that, traders that are looking at shorting this market have an opportunity to do so in a higher level.
NATGAS Video 19.12.18
I still believe that the $4.00 level above offers resistance, and I think that the level will see plenty of Sellers jump in if we reach that high. Quite frankly, I would love to short this market near that area but the question is whether or not we can even get to that level? I would point out that the 50 day EMA is starting to rollover just below there at the $3.93 level, so I think that could be a barrier as well.
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Underneath, I believe that the $3.50 level is the beginning of significant support based upon the gap higher in early November. I think we are going to go down to the $3.00 level, but obviously there will be the occasional rally between here and there. I look at those rallies as an opportunity to start shorting again, because quite frankly there is more than enough natural gas out there to supply the market, and any shortcomings will be overcome rather quickly.