Natural Gas Price Forecast – Natural Gas Markets Rally Significantly
Natural gas markets have rallied significantly to kick off the trading session on Tuesday, now that we have full liquidity in the marketplace. Ultimately, the market looks as if it is trying to reach towards the $2.00 level which of course is a large, round, psychologically significant figure. That always attract a certain amount of attention as a large number, but also there is the 50 day EMA that is going lower. Ultimately, I believe that the market should continue to struggle in that general vicinity and I’m waiting for a daily exhaust of candle in order to get short. If the market was to break above the 50 day EMA and stay above there, then it’s possible that we may go as high as $2.20 above.
NATGAS Video 19.02.20
Ultimately, this is a market that is soon as it shows signs of exhaustion, traders will come in and start shorting right away. After all, there is a massive amount of oversupply when it comes to natural gas, but it will have the occasional rally as such. I’m looking for an opportunity to continue selling this market as it gives us a bit of room to move.
Ultimately, this is a market that I think won’t rally for a longer-term scenario until we get bankruptcies in the United States, as there has been so much in the way of oversupply and quite frankly the drillers and the producers need to be thinned out. As soon as that happens, then natural gas will be able to rally for the longer-term but until then I’m waiting for an exhaustive candlestick in order to start selling. However, I will based upon the daily candlestick, and not as soon as the market hits trouble.