Natural Gas Price Forecast – Natural gas markets show signs of life on Thursday

Natural gas markets rallied during the Thursday session but mildly to say the least. Quite frankly, this is a market that has been in a downtrend for quite some time so it doesn’t make any sense that we would rally at this point. Overall, I think that this market is trying to get too fresh, new lows but it’s going to take a significant amount of momentum to make that happen. The $2.00 level is of course going to be a large, round, psychologically significant target, and I think it’s only a matter time before we test that out. I do like the idea of waiting for bounces to take advantage of, especially on signs of exhaustion.

NATGAS Video 26.07.19

The 50 day EMA which is painted in red on this chart is starting to drift lower, after causing major resistance at the $2.40 level. This being the case, it’s very likely that the 50 day EMA will be an area that technical traders are willing to jump in and start shorting. Alternately, if we break down below the $2.20 level, it’s likely that we drop down to the $2.15 level. Below there, it opens the door to that $2.00 level. Quite frankly, I don’t have a scenario in which a willing to buy natural gas, because it is so oversupplied and of course we are entering a time of year where there will be a lot of demand for heating or cooling.