Natural Gas Price Forecast – Natural Gas Pulls Back From Same LevelNatural gas markets have rallied his significantly during the trading session on Friday but continues to find resistance near the $2.80 level.
Natural gas markets initially rallied during the trading session on Friday only to turn around and show signs of exhaustion near the $2.80 level. At this point, the market is sitting at the 50 day EMA, and therefore it is likely to pay close attention to this area. That being said though, the market is likely to continue going lower based upon the fact that this is the wrong time of year for buyers to be looking to get into natural gas, because quite frankly the demand will start dropping.
NATGAS Video 18.01.21
When you look at this chart, it is easy to see that there is a significant amount of resistance above extending from the $2.80 level to the $3.00 level. Ultimately, I think that rallies that show signs of exhaustion will continue to be sold into, as the market has struggled to continue to go forward. I think ultimately the market is likely to go down to the 200 day EMA which is near the $2.48 level. After that, the market then could go down to the $2.40 level. All things being equal, I like the idea of fading any short-term signs of strength, because given enough time I think the market will probably look towards the $2.00 level underneath, based upon longer-term charts.
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After all, we have more than enough natural gas out there and therefore it is going to be difficult to get through the massive amounts of supply, so I think this continues to be a longer-term bearish market going forward. I have no interest in buying this market, because quite frankly I cannot even come up with the wish that area.
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