Natural Gas Price Forecast – Natural gas markets rally to start week

Natural gas markets rallied to kick off the week but by the time the pits opened it started to roll over again. That being the case, it’s likely that we will continue to see sellers come back into this market, perhaps reaching towards the lows again. At this point, the 50 day EMA sits just above so it makes sense that technical traders were also be sellers as well. That being the case, I’m simply looking for signs of exhaustion to take advantage of. Granted, we are getting closer to cold month contracts, but we are not quite there yet. We are only trading the October contract, so I don’t necessarily think that we are ready to have the yearly rally yet.

NATGAS Video 27.08.19

That being said, if we were to close on a daily chart above the 50 day EMA which is pictured in red on the chart attached, that would be very bullish sign. That could have the market looking towards the $2.40 level, possibly even the $2.50 after that. I anticipate that the rallies will continue to be faded though, and that the market wants to try to test the $2.00 level again. If we can break below there, then the market is very likely to go much lower, reaching towards the $1.75 level, possibly even lower than that. At this point though, we are getting kind of late in the year to expect that type of major break down. I think we will test the area about whether we break through is a completely different question.

Please let us know what you think in the comments below