Natural Gas Price Forecast – Natural Gas Markets Run Into Resistance
The natural gas markets have rallied again during the trading session on Wednesday, breaking above the 50 day EMA slightly to show signs of bullish pressure. However, the $2.40 level continues to be crucial as it has been an area where both buyers and sellers have push the market around time and time again.
Natural gas markets rallied a bit during the trading session on Wednesday, reaching towards the $2.40 level which has recently been resistance but when you look at longer-term, it’s been an area where both buyers and sellers have been pushing this market back and forth. The 50 day EMA is also in the neighborhood so it makes sense that a little bit of a “pushback” has happened. That being said, I do like natural gas if we can break above the $2.42 level, as it should open the door towards the $2.60 level.
NATGAS Video 17.10.19
The alternate scenario of course is that the candlestick it’s broken to the downside, which could open up the door for more consolidation between the $2.20 level on the bottom and the $2.40 level on the top. I expect a lot of back-and-forth choppy behavior, and therefore could be more base building going forward. That being said, I don’t expect the market to continue going lower for a significant amount of time this time of year. The question now is whether or not we are building a base, or if we are just simply winding back and forth in order to build up significant amount of momentum. Remember, markets need inertia to be built up in order to make a bigger move. A break above the $2.40 level also kicks off a “W pattern” that measures for a move towards the $2.60 level.
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