Natural Gas Price Forecast – Natural Gas Markets Rally On WednesdayNatural gas markets have rallied during the trading session on Wednesday, trying to fill the gap from the beginning of the week. That being said, there is still a major downtrend that you should be paying attention to as there are structural issues.
Natural gas markets rallied a bit during the trading session on Wednesday, to attempt to fill the gap. The gap extends to the $1.86 level, and as a result at this point the sellers seem as if they are ready to pounce on this market yet again. Even if we were to break above the gap, the market is likely to continue seeing resistance at the $1.90 level, and then eventually the $2.00 level above as it is a large, round, psychologically significant figure. Furthermore, the 50 day EMA is reaching towards that level, an area that will attract a significant amount of attention based upon it being such a common moving average for people to pay attention to.
NATGAS Video 13.02.20
If the market was to break above that level, then we would have to reevaluate a lot of things, but at this point there is a major oversupply of natural gas out there that continues to be a major problem. Ultimately, the market is negative due to the oversupply, and of course the warmer winter temperatures in the United States. This is essentially a major “one-two punch” to the face of the markets. There is a huge wave of bankruptcies getting ready to come to the United States, and that should work against the selling pressure eventually, but we are away from that happening. Ultimately, this is a market that is one that you should be selling on signs of exhaustion and forgetting about buying anytime soon. Temperatures are only going to get warmer, and that will more than likely keep any rally suppressed.
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