Natural Gas Price Forecast – Natural Gas Markets Struggle To Hang On To Gains

Natural gas markets initially tried to rally during the trading session on Tuesday but gave back the gains rather quickly as we continue to struggle. The 200 day EMA is sitting just below though, so it’s very likely that we will continue to see a lot of volatility in the energy markets. Quite frankly, the temperatures are starting to drop in the United States I think it’s only a matter of time before we get some type of bounce that is sustainable and significant. In the short term though, it certainly looks as if the oversupply has a lot to say still.

NATGAS Video 13.11.19

If the market was to break above the highs from the trading session and perhaps even the gap from a couple of days ago, it’s very likely that this market will continue to go much higher, perhaps reaching towards the $2.85 level, and then eventually the $3.00 level. We are getting very close to the cyclical trade that will send this market much higher, perhaps lasting as long as the middle of January. I have no interest in shorting, because just below the 200 day EMA, we have the 50 day EMA coming into play as well. At this point, I’m waiting for some type of break out to the upside or support of candle closer to the moving averages to take advantage of. Until then, it’s a simple waiting game to find bullish pressure to take advantage of. Ultimately, I like the idea of this market going higher, but very cautious in the short term as we continue to chew through the massive amounts of supply.

Please let us know what you think in the comments below