Natural Gas Price Forecast – Natural gas markets rise slowly on Friday

Natural gas markets pulled back slightly during the trading session on Friday, but then turned around to rally a bit above the $2.60 level. That of course is a very bullish sign for the short term, but longer-term there’s plenty of resistance above that can take this market out. The 50 day EMA which is pictured in red on the chart suggests that we could see resistance at that point. Signs of exhaustion could be opportunities to short this market, because quite frankly we are not in the right time of year to be expecting major strength in the natural gas market.

NATGAS Video 13.05.19

Looking at this chart, I believe that the $2.50 level underneath should be a massive “floor” in the market, at least short term. However, I think there will be plenty of places above that we could start selling. The 50 day EMA is the first level, followed by the $2.75 level which also has showed resistance in the past. After that, I’d be a seller $2.90. I’d be stunned if we somehow break above the $3.00 level, which of course would be an extraordinarily bullish sign. I think you will be rewarded if you simply stand on the sidelines and wait for signs of exhaustion, you can sell the market because there is much more momentum to the downside from a longer-term standpoint. If we manage to break below the $2.50 level, then the market could go down to the $2.25 level next. I have no interest in buying this market until probably November.

Please let us know what you think in the comments below