Natural Gas Price Forecast – Natural gas markets rally again on ThursdayNatural gas markets rallied a bit during the trading session on Thursday again, as we continue to use the 50 day EMA as a marker. Ultimately, this is a market that is going to be short-term bullish, but there are longer-term issues to pay attention to.
Natural gas markets rallied a bit during the trading session on Thursday again, as we have broken above the 50 day EMA again. This is a market that I believe will eventually find reasons to rollover, but in the short term we may continue to go higher, perhaps as high as $2.60 as traders are focusing on hotter than anticipated temperatures in August. Remember, we are trading the August contract right now on the futures market so that’s something to pay attention to but quite frankly this is a short-lived phenomenon.
NATGAS Video 12.07.19
Heat waves in the United States tend to last just a few weeks at best, so it’s only a matter time before the oversupply of natural gas comes back into the picture. In fact, this is the wrong time of year to expect a lot of bullish pressure for the natural gas market, as we simply have far too much of it out there to make it “rare enough” to bid up. The $2.60 level is a major resistance barrier, and I think somewhere between here and there we will see signs of a selloff that we can take advantage of. Some type of an exhaustive candle stick could be the route to selling again, as natural gas is so overabundant there’s no reason to think this is about to get overly bullish. The $2.30 level underneath is massive support though, but it also makes a nice target at this point.
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