Natural Gas Price Forecast – sloppy trading on Wednesday

Natural gas markets went back and forth during the trading session on Wednesday and what would have been thin volume. Ultimately, I think that the 50 day EMA above is resistance, and as it is starting to turn lower it could be a nice opportunity to start selling again. However, if we break above the 50 day EMA, it could send the market towards the $4.00 level above. With this type of volatility, I think that the market will probably find reason to roll over eventually, but we may get a bit of a relief rally between now and then. Look at that relief rally as an opportunity to start selling again.

NATGAS Video 27.12.18

We have filled the gap at $3.25, which was my longer-term target, although to be honest I didn’t think it was going to be hit this fast. With this being the case, it makes sense that the markets will probably have a relief rally just waiting to happen, but again I think that should be a function of liquidity or better yet, the lack of during this time of year. We are starting to trade away from the colder months in the futures markets, and quite frankly it’s been fairly warm in the United States during what is typically the most bullish season, so there’s no reason to think that the natural gas markets will hold onto gains for any significant amount of time. Ultimately, I am a seller of rallies.