Natural Gas Price Forecast – Natural gas markets recover on FridayNatural gas markets rallied significantly on Friday to close out the week, as inventories don’t justify the massive selloff that we have seen, or at the very least we are oversold.
Natural gas markets rallied rather significantly during trading on Friday as we close out the week on a solid foot. However, we haven’t broken out to the upside and even if we did I see plenty of reasons to think that we are going to sell at higher levels anyway. I love to see these rallies as it gives me an opportunity to take advantage of a market that is obviously bearish, and that the fundamental situational course is very bearish in general. The marketplace is oversold, but it is also oversupplied. At this point, I suspect that the $2.50 level will be far too attractive for traders to ignore.
NATGAS Video 17.06.19
This bullish candle stick for the Friday session does in fact suggest that we could continue to go higher, but if we do I think that any signs of exhaustion near the $2.50 level, players will come back into the market and start shorting immediately. The resistance area extends all the way to the $2.60 level, especially considering that the 50 day EMA slices right through it. Ultimately, I have no scenario in which I want to buy this market as I think that the market has several months before demand catches up with the massive supply that we have out there. Granted, we are oversold so I think this bounce should be looked at with anticipation and of course patience. Overall, we typically see that the market starts to rally closer to November, so until then it’s a one-way ride with the occasional bump that I plan on taking advantage of.
Please let us know what you think in the comments below