Natural Gas Price Forecast – Natural gas markets rise slightly on Wednesday

Natural gas markets rose a bit during the trading session on Wednesday, breaking above the $2.60 level to show signs of life again. However, the market is continuing to struggle just a bit and it’s very likely that we will continue to see trouble in general. Looking at the market, we have been falling over the last couple of months which makes quite a bit of sense as the United States and Europe both leave the high demand season for natural gas. With that being the situation that we find ourselves in, it makes a lot of sense to sell rallies.

NATGAS Video 02.05.19

The 50 day EMA above is currently trading water at the $2.72 level, which is an area that will probably drop a bit meet any type of buying pressure, specifically around the $2.60 level. That’s an area that is a large come around, psychologically significant figure, so it would make sense that the market would find a bit of resistance and selling pressure in that area. If we were to break above it, then the market probably goes looking towards the $2.75 level and then eventually the $2.80 level. Regardless, I don’t have any interest in buying this market I think is simply better off to simply wait for an opportunity to start selling again.

To the downside I see the $2.50 level as massive support, an area that if it gets broken it would of course be very negative. At that point, we could then fall to the $2.25 level.

Please let us know what you think in the comments below