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Natural Gas Price Forecast – Natural Gas Markets Struggling With Big Handle

Natural gas markets broke down just a bit during the trading session on Thursday, as it continues to struggle with the idea of breaking above the $2.00 level. The April contract is the front contract now as we are starting to rollover, so at this point we are focusing on the fact that temperatures are going to be getting warmer, and therefore it is going to continue to cause issues for the pricing of this commodity. Furthermore, the 50 day EMA is coming into focus, so therefore it makes sense that we could find a little bit of resistance. Some sign of exhaustion would be a signal to start selling again, and quite frankly I don’t really have an opportunity where I’m looking to start buying.

NATGAS Video 21.02.20

At this point, the $2.20 level would be the next resistance barrier, and if we were to break above there, then it could be time to reevaluate the entire situation, but right now it’s difficult to imagine a scenario where we go higher for a sustained move, at least not until we get massive bankruptcies which could be coming in the next few months when it comes to natural gas suppliers and drillers.

There are also concerns about global demand, so pay attention to that but it should be noted that we are at extraordinarily oversold levels, so this rally makes quite a bit of sense. Having said that, it also offers an opportunity that although we are going to have cooler temperatures in the short term, the oversupply issue is still a major theme in this market.

This article was originally posted on FX Empire

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