Natural Gas Price Forecast – Natural Gas Markets Touch 50 Day EMANatural gas markets exploded to the upside during the trading session on Wednesday, reaching towards the 50 day EMA pulling back slightly.
Natural gas markets have continued to bounce around back and forth, seeing the buyers take over the day on Wednesday. The 50 day EMA did offer a bit of resistance so it makes sense that we could see the pullback continue just a bit. Having said that, you guys know now that I am not the silly bullish, but I am looking at the potential of a bottoming pattern.
I believe that this market is likely to continue to see a lot of volatility built into it, mainly because natural gas is at a major crossroads right now. Quite frankly, natural gas is looking at the disruption of business due to the fact that there is a huge list of companies going under this year. Bankrupt drillers do not add to the supply obviously, and that of course is one of the bullish factors.
NATGAS Video 04.06.20
Another bullish factor is the fact that the economies around the world are opening up, but natural gas is in the wrong season to see massive use take off. Because of this, I believe that rallies will be somewhat short-lived. This is not to say that the market cannot reach towards the $2.00 level, or even the 200 day EMA which is a $2.08, just that I think we have a lot of work to do before we are suddenly bullish of natural gas. As we await the jobs numbers later this week, a lot of “whistling past the graveyard” continues to drive the market. Quite frankly, this market continues to be exceedingly difficult to stomach unless of course you are day trading for micro movements.
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