Natural Gas Price Forecast – Natural gas markets rally on Friday

Natural gas markets rallied a bit during the trading session on Friday, as we close out the week on a positive note. Looking at the chart, the $3.00 level has offered a significant amount of resistance in the past, just as it had been supportive. Beyond that, we have a major gap at that level that still needs to be filled, and of course will cause a lot of resistance. The 50 day EMA sits right there as well, so that’s another reason to think that the sellers may come back into this market.

NATGAS Video 04.03.19

If we can break above there, then I would go looking towards the black 200 day EMA at the $3.15 level. A bounce from here should give us an opportunity to start selling at these levels, so therefore I’m looking for a bounce in some type of exhaustive candle to sell this market. I’ve been saying that for a couple of weeks, and now it’s just simply a matter of waiting for the proper level to sell from. I certainly wouldn’t be a buyer here, because quite frankly we are still in a major downtrend.

There is simply no hope of burning through the massive amount of supply out there, so even if we do get a short-term spike in demand, it will be short-term at best. The overabundance of natural gas will continue to be a weight around the neck of this market, so simply selling signs of exhaustion will continue to be a nice opportunity.

Please let us know what you think in the comments below