Natural Gas Price Forecast – Natural Gas Markets Struggling Again

Natural gas markets initially tried to rally during the trading session on Wednesday but continues to show plenty of resistance. Ultimately, if we were to break down below the bottom of the candlestick for the trading session on Wednesday, then it opens up a move much lower, perhaps reaching down towards the 50 day EMA. After that, the market then goes looking towards the 200 day EMA at the $2.50 level. All things being equal, I believe that the $3.00 level continues to be a massive ceiling in the market, and now over the last couple of days we have seen sellers come back into the marketplace.

NATGAS Video 04.02.21

Granted, there is the massive storm in the northeastern part of the United States coming and dumping snow everywhere, as well as plummeting temperatures. This will drive up the idea of demand, but ultimately, I think what we still have to deal with is the fact that we are getting close to the end of winter and are trading the March contract. After all, the market is going to start focusing on the fact that we have far too much natural gas out there to push the supply down for a longer-term move, so I do think that we are getting close to the end of the winter rally, and I still believe in fading all of these attempts to push natural gas higher. At this point, the market is likely to see the $2.30 level as a huge target for longer-term traders, followed by the $2.00 level after that. Fading short-term rallies continues to be the best way to trade this market and quite frankly I am is a never buy natural gas.

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