Natural Gas Price Forecast – Natural Gas Markets Show Exhaustion
Natural gas markets have initially tried to rally on Tuesday but gave back the gains rather quickly to turn around and show signs of exhaustion at $1.70 rather quickly. At this point, if the market was to break above there, then the next target will be the $1.80 level which should be massive resistance. Furthermore, the 50 day EMA is reaching towards that level which should be resistance as well. Ultimately, the market will continue to be very noisy, but we also have to pay attention to the significant headwinds that this market will continue to face. The oversupply remains extraordinary.
NATGAS Video 01.04.20
Looking at this chart, I see the $1.60 level is an area that is massive support and I would be a bit surprised to see us break down below there, although it is certainly within the realm of possibility. A move below that level could open up the door to the 1.50 level after that, which is a large, round, psychologically significant figure. Rallies at this point are to be faded, and buying natural gas is all but impossible as we have a massive oversupply and lack of demand at the same time. With that, I have no interest whatsoever in trying to fight this momentum. I see selling opportunity that the 1.70 level, the 1.80 level, and most certainly at the 2.00 level that being said, look for bounces to take advantage of shorting opportunities. It’s not until we get bankruptcies in North America when it comes to natural gas suppliers that this market will turn around and take off.
This article was originally posted on FX Empire
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