Natural Gas Price Forecast – Natural gas markets run into resistanceNatural gas markets rally during the trading session on Thursday, to reach towards the 50 day EMA pictured in red on the chart. However, we are starting to give back some of the gains as the 50 day EMA has been so important in this market.
Natural gas markets rallied rather significantly during the trading session on Thursday but ran into a significant amount of resistance in the form of the 50 day EMA, pictured in red on the chart. By pulling back from there it shows just how important this indicator will continue to be as it has offered significant resistance several times in the past. Ultimately, I think that the market will probably continue to see a lot of volatility, but we are most certainly in a downtrend and therefore I think it’s only a matter time before we probably reach lower. At this point, I think that the 50 day EMA is a significant indicator that we should be paying attention to, as it has been so reliable.
NATGAS Video 02.08.19
Looking at the charts, the most recent low would probably be the target, and then perhaps even the psychologically important $2.00 level underneath. That is a round figure that should be paid quite a bit of attention to, and therefore I think that the selling of this commodity should continue to be the way going forward, especially considering that there is a massive oversupply of natural gas out there.
The $2.50 level above is significant resistance, so if we were to break above there it would of course attract a lot of attention. However, I don’t expect to see that anytime soon that the supply and demand situation is so skewed towards the negative side at the moment, and the foreseeable future.
Please let us know what you think in the comments below