Natural Gas Price Forecast – Natural Gas Markets Rally Into Resistance

Natural gas markets have rallied significantly during the trading session on Tuesday, slamming into the $1.80 level. That’s an area that was previous support, and it should now offer a bit of resistance but quite frankly it looks as if we are going to continue to go to the upside. That being said, it’s likely that we will continue to see a bit of noise in this area, but if we do rally from here it’s likely that the 50 day EMA will be targeted next. That currently trades at the $1.97 level and is drafting lower. Even if we break above there, I also recognize the $2.00 level as a selling opportunity.

NATGAS Video 04.03.20

Yes, after the rate cut, we have seen the US dollar take a little bit of a hit, but quite frankly that’s no reason to be buying natural gas. Furthermore, it’s not as if the coronavirus suddenly disappears and people desperately need natural gas. This is a reactionary moves by algorithm trading and can be taken advantage of above. Quite frankly, this is a market that should offer a nice opportunity if you are patient enough to wait for the rollover. At this point, I do believe that we probably revisit the lows but give the market an opportunity to bounce high enough to make the risk to reward worthwhile and therefore a little bit of patience is probably what you need in order to make significant gains in this market. We are at extreme lows, so the bounce could be rather strong.