Natural Gas Price Forecast – Natural Gas Stalling the 50 Day EMA

Natural gas markets have given back early gains on Thursday as we continue to see a bit of heavy pressure just above. Natural gas markets have gotten a little bit of a boost over the last couple of days, as we had gotten a little bit colder temperatures coming to the United States. However, this is a short-term phenomenon, as there is a snowstorm coming to the northeast again. We are getting close to the end of the wintertime though, as we are trading the early part of the March contract. Given enough time, it is very likely that the market is going to sell off due to a lack of demand.

NATGAS Video 08.01.21

To the downside, the 200 day EMA could be a target underneath, near the $2.46 level. That is an area that could cause a bit of support, and therefore I think that it is only a matter of time before the buyers may try to cause a little bit of a bounce there but given enough time, we should see the warmer temperatures weigh upon the market. I think that it is only a matter of time before we see that warmer temperatures selloff to reach down towards the $2.00 level underneath.

Every time this market rallies, and of course shows signs of exhaustion, I would be more than willing to start shorting. That being said, the market should continue to see a lot of volatility based upon short-term weather reports, which is typical for the natural gas markets. Nonetheless, I do not have any interest in buying because this winter has been a complete bust. I believe that the $3.00 level should be a bit of the ceiling.

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