Natural Gas Price Forecast – Continue to Hang at 50 Day EMA
Natural gas markets have fell during the trading session on Monday to kick off the week, dipping below the 50 day EMA. That being said, the market is sitting just above a massive gap that people have been paying attention to, so therefore it makes quite a bit of sense that there are buyers here to lift the market. That being said though, the natural gas markets are going to continue to see a lot of pressure due to the fact that we are getting towards a warmer time of year, and as the northern hemisphere heads toward spring.
NATGAS Video 02.03.21
I do believe that we could get a short bounce from here, but that bounce is probably something that we can sell into, and I certainly will be doing that on signs of exhaustion. The $3.00 level should be significant resistance, due to the structure and of course of the large, round, psychological significance of the figure. To the downside, I believe that the 200 day EMA could be targeted, which is currently sitting at $2.56, but more than likely going to reach towards the $2.50 level over the next couple of sessions.
There is the so-called “reopening trade”, but any rally at this point has to be looked at with significant skepticism due to the fact that the next couple of weeks should not only see warmer temperatures, but increased supply. While some parts of the world see significant demand for natural gas, the reality is that the United States is by far the biggest mover. In other words, this is still a bearish market longer term.
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This article was originally posted on FX Empire
