Natural Gas Price Forecast – Natural Gas Struggling With 50 Day EMANatural gas has pulled back a bit on Wednesday as we continue to see the markets Russell with the idea of a warmer winter than anticipated.
Natural gas markets have pulled back a bit from the $2.80 level during the trading session on Wednesday, which is also will just above where the 50 day EMA sits. Ultimately, the market is likely to continue to show a bit of resistance just above here, extending all the way to the $3.00 level. Just above the $3.00 level there is a small gap, which could offer even more resistance. What is worth noting right now is that we are rolling over from the January contract to the February contract, so there may be a bit of erratic behavior, especially considering that the volume is going to be very thin over the holidays.
NATGAS Video 24.12.20
To the downside, the 200 day EMA underneath offers support, so I think longer term we have buyers in this contract. However, once we start to roll over in the middle of January towards the March contract, we will start to see sellers based upon the fact that spring will be coming. I think we have one more surge higher in this market built in, and it is only a matter of time before you can profit to the upside.
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However, I recognize that the surge may not be as high as it once could have been, just due to the fact that the oversupply continues to be an issue and the fact that we will not have drawn down as much as thought, that will certainly be a longer-term problem in this market going forward. Furthermore, natural gas drillers are starting to creep back into the fields due to higher prices.
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