Natural Gas Weekly Price Forecast: Natural Gas Sitting at 200 Week EMANatural gas had a slightly negative week as we continue to dance around the 200 week EMA. It looks as if it is trying to form one more move to the upside.
Natural gas markets have gone back and forth during the course of the week but seem to be paying close attention to the 200 week EMA. The market is trading the February contract, which is the coldest part of the year, therefore it is likely that the demand will pick up. That being said, the market is likely to see a lot of noise, but I do believe eventually the buyers step into the market. The Monday candlestick was a hammer after all, and that of course helps to the upside.
NATGAS Video 28.12.20
I believe that the $3.00 level above will be a significant resistance barrier, especially as it features a gap on the daily chart. That is an area that should continue to cause a bit of selling pressure, but I think that we need to go back out there to test that area again. In a few weeks, we will start talking about the March contract, which of course is going to feature warmer temperatures, and therefore less demand. At this point time, the market would then start to sell off.
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I believe that we will see a bit of a bounce from here, only to see the market selloff for a longer-term move. It really comes down to the timeframe that you are working with, but I do think that it is only a matter of time before sellers takeover. I think we have a candle or two of strength from here only to turn around and continue the longer-term negativity.
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