Natural Gas Price Forecast – Natural gas markets strong on Wednesday

Natural gas markets have broken higher during the trading session on Wednesday, showing signs of real strength as we broke above the $2.20 level. We are reaching towards the $2.25 level at this point which of course is a psychologically important figure, but at this point in time it is still a very negative trend and you should not forget that. After all, we have recently formed a “lower low”, which is a very definition of a negative trend.

NATGAS Video 01.08.19

Just above, there is the red 50 day EMA, so it makes sense that we are going to try to find sellers there as well. However, I don’t even think that we get to that point in the short term unless something changes. The $2.30 level above is massive resistance, and at that point I think we would probably see potential selling as well. We are in a downtrend and that isn’t going to change anytime soon. This rally is probably more of a relief rally than anything else, and it’s not until we break above the $2.50 level that I would be truly impressed by a potential move to the upside. I think it’s only a matter time before we form some type of exhaustive candle that we can take advantage of, and I will in fact be doing that as soon as it shows up.

To the downside I see the $2.00 level underneath, which of course is a major target. That’s also an area where I think a lot of buyers will return, so that is roughly where I think the entire trend could change as we head into colder months.

Please let us know what you think in the comments below