Natural Gas Price Forecast – natural gas markets went sidewaysNatural gas markets went sideways during the trading session on Friday, as we start to drift into the weekend. Because of this, it’s very likely that we will remain neutral.
Natural gas markets went back and forth during the trading session on Friday as we drift into the weekend. Ultimately, this is a market that is an extremely low levels, so it’s likely that the market will eventually bounce. After all, the $2.50 level has been extraordinarily bullish as far as support is concerned, but at this point I think that the bounce will more than likely offer a selling opportunity. In fact, that’s essentially what I have been waiting on for the last couple of weeks, an opportunity to start shorting.
NATGAS Video 25.02.19
The $3.00 level above features a gap that hasn’t been filled yet, it of course the 50 day EMA. Both of those reasons are good enough for me to start selling at the first signs of exhaustion. We simply don’t have enough room to move to the downside to short from this level, so this is all about taking your time and waiting on the sidelines. Keep in mind that the winter has been rather stubborn in the United States, refusing to go away and that could cause another spike in prices. I will take advantage of that in order to sell higher prices, but in the meantime refuse to buy this market at these lows, even though the bounce is all but assured. Quite frankly, this market can turn right back around and slam right back down. Because of this, I’m looking to fade rallies at signs of exhaustion again, and I think that it just gives us more real estate to cover. If we break above the $3.00 level, then the next battlefield will be closer to the $3.15 level.
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