Natural Gas Price Forecast – natural gas markets struggle again

Natural gas markets initially tried to rally during the trading session on Thursday but gave back quite a bit of the gains as the inventory numbers came out rather negative. However, I think it’s only a matter of time before we get a bit of short covering, and then goes reaching towards the $3.00 level above, where we have the gap from previous trading. That Hasn’t been filled yet, so that of course will be a bit of a target.

NATGAS Video 01.03.19

The $2.50 level underneath should be massive support, so I’m not looking to short if we get too close to it. At this point, I like the idea of shorting at higher levels so that I can pick up a bit of real estate for my trade. This helps with the risk to reward situation, giving us a bit more of an opportunity to make money.

The $3.00 level also coincides with the 50 day EMA, which of course has a lot of importance to technical traders. At this point, any signs of exhaustion in that general vicinity is going to be an excellent selling opportunity. The market fading in that area should be an excellent signal to pick up another short. If we do break above the 50 day EMA on a daily close, then the market will probably go looking towards the 200 day EMA at the $3.15 region. Looking at this market, I have no interest whatsoever in trying to pick this market to the upside, as it is extraordinarily bearish.

Please let us know what you think in the comments below