Natural Gas Price Forecast – Natural Gas Markets Slam Into 200 Day EMA

Natural gas markets have fallen a bit during the course of the trading session on Thursday to reach down towards the 200 day EMA, which of course is a major technical indicator. In fact, the market is very likely to bounce from here as we are trying to form a bit of a hammer. That of course is a good sign for a bounce, but quite frankly at this point in time I am not willing to buy this market, rather I am more inclined to sell this market on signs of exhaustion.

NATGAS Video 03.12.21

I do like the idea of fading somewhere near the $4.50 level, possibly even closer to the $4.75 level. On the other hand, if we were to break down below the bottom of the candlestick for the trading session on Thursday, then we should fall apart and go looking towards the $4.00 level. That being said, I do not like the idea of chasing this market, as it does tend to have a significant amount of violent pullbacks in both directions. The market continues to see a lot of volatility, but that makes quite a bit of sense as we are starting to return to normalcy.

This is the January contract that we are trading, so we are paying close attention to the weather reports coming out the United States. The market continues to be very noisy, but at this point in time it is getting closer to changing over towards warmer months, so keep in mind that this market will sell off much quicker than the weather will turn as we focus ahead on what looks to be a milder winter in America.

For a look at all of today’s economic events, check out our economic calendar.