Natural Gas Price Forecast – Stuck Between Two Moving Averages

Natural gas markets have been back and forth during the trading session on Wednesday, as temperatures are dropping in the northern part of the United States, albeit for a very short amount of time. With that being the case, it is likely that we are going to see a short-term pop, but quite frankly that will be sold into. I have no interest in trying to go long anytime soon, as the natural gas markets are far too oversupplied for traders to think that we are suddenly going to see some type of massive spike that comes into the fray.

NATGAS Video 01.04.21

I believe that the 50 day EMA will continue to offer resistance, just as the $2.80 level is going to offer resistance. All things being equal, this is a market that I think will offer selling opportunities on signs of exhaustion, and that is something that we need to pay close attention to. Longer-term, I fully anticipate that I will be short of this market most of the year, as we will probably go looking towards the $2.00 level sometime this summer. I simply look for signs of exhaustion that I can sell into, because of the oversupplied nature of this market that is not going to change anytime soon. Because of this, I believe that we are looking at a scenario where we would see a lot of sellers jumping in every time, they get an opportunity to sell. Buying is something that I have absolutely no interest in trying to do until at least October.

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