Natural Gas Price Forecast – Natural Gas Still VolatileThe natural gas markets initially tried to rally during the trading session on Monday but have given back the gains as we continue to hover around the $190 level.
Natural gas markets initially tried to rally during the trading session on Monday, but then gave back quite a bit of gains near the $1.95 level. Now that we have pulled back from there and show signs of exhaustion and furthermore, the market has gone back and forth over the last several days. We are at extremely low levels, and the $2.00 level being broken to the downside of course is a very negative sign. The $1.80 level underneath should offer plenty of support based upon what we have seen recently, and I think that the market is going to go back and forth. If we were to break above the $2.00 level, then the market is likely to go towards the 50 day EMA above which is closer to the $2.20 level. Quite frankly, that would be an opportunity to fade this rally as we show signs of exhaustion.
NATGAS Video 28.01.20
If we were to break down below the $1.80 level, the market should then go down to the $1.75 dollars level. At this point, the market is likely to see sellers come back in every time it rallies for any type of significant move, but signs of exhaustion are an opportunity to sell off. The oversupply of natural gas continues to be a major issue, and therefore it makes sense that the price is very low. That being said, I like the idea of taking advantage of the longer-term trend, and quite frankly at this point any time we have seen a significant rally, it’s been a great way to lose money if you aren’t careful.
Please let us know what you think in the comments below