Natural Gas Price Forecast – Natural gas markets show exhaustion

Natural gas markets have rallied a bit during the trading session on Tuesday but found enough resistance at the 50 day EMA to turn around of form a shooting star. The shooting star of course is a very negative sign and it looks very likely to roll the market over a bit. There is a significant amount of resistance starting at the $2.90 level that extends to the $3.00 level.

NATGAS Video 20.03.19

That area has been important more than once, so the fact that we are rolling over here is not much of a surprise as we continue to look for short-term rallies that I can sell. Natural gas has struggled for quite some time, and I don’t see anything on the longer-term charts that tells me it’s about to change. If that’s the case, it becomes an exercise in patience and waiting for an opportunity to sell again, so I look for short-term exhaustion that I can take advantage of for very small trades. I do not think that we can break down below the psychologically important $2.50 level underneath, so this is going to continue to be a very short term focused market. Given enough time, that short-term focus market should lead to a bigger move, but clearly we are nowhere near it right now. If that is going to be the scenario we are in for some time, it makes no point since trying to find it and going for anything more than a few cents here and there.

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