Natural Gas Price Forecast – Natural gas markets continue to show support

Natural gas markets have rallied rather succinctly during the trading session after initially falling. We found the 50 day EMA as support, and that of course is crucial. That is very impressive and I think we are going to continue to see buyers come in to try to push this higher. I don’t know that this is the cold weather pop quite yet, but it certainly looks as if it’s got some legs. I am not bullish of natural gas though, and I will be looking for opportunities to sell natural gas at higher levels. That being said, I think that this is a market that has one more leg down and then we could see the potential turnaround for the winter.

NATGAS Video 02.09.19

The $2.20 level would be my first target if we do break down below the 50 day EMA, just as if we break higher I think the $2.40 level is your next target. All things being equal it’ll be interesting to see what happens but I think the one thing you can probably count on is quite a bit of volatility. That volatility will continue to be a major problem going forward, as the demand for natural gas still doesn’t come anywhere near the massive supply. I believe ultimately this is a market that will find plenty of demand in about two months. With that, I think forward-looking futures traders will be paying attention to that, but at the end of the day it seems like we have some work to do.

Please let us know what you think in the comments below