Natural Gas Price Forecast – Natural Gas Markets Have Another Rough Day
Natural gas markets have shown themselves to be rather soft during the trading session on Friday, as we are perhaps starting to price and warmer temperatures than thought. That being said though, we are still a long way away from the warmer temperatures, at least for the longer term. That being said, the natural gas markets will continue to be positive, but we may have gotten far ahead of ourselves. This is a market that still sees plenty of support underneath.
NATGAS Video 01.11.21
The 50 day EMA currently sits at the $5.14 level and is starting to go higher. With that being the case, think there are plenty of buyers underneath willing to take advantage of any type of supportive action that shows up, and I do believe that will eventually be the case. If we were to break down below that level, then the most important level beyond there would be the $5.00 level, an area that of course has been important multiple times in the past. The market is getting very volatile, but quite frankly I think a lot of what we are seeing here is the markets trying to digest what has been a particularly strong move to the upside.
To the upside there is a significant amount of resistance near the $6.50 level, as we have formed a little bit of a “double top.” That being said, I would not worry too much about it, because quite frankly the market was bound find some type of structural reason to pull back. At this juncture, I have no interest in trying to short natural gas, I am simply waiting for a nice set up to get involved.
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