Natural gas markets have turned around to fill the gap, and now look like they are going to try to break out to the upside. Ultimately, if we can get above the $1.90 level, then it’s possible that the market goes looking towards the $2.00 level above. That’s an area that of course would offer a lot of resistance based upon the psychological level, and the 50 day EMA racing towards that level. I think at this point a bounce that level is very possible, but I would not be a buyer. Simply put, this is a market that you cannot trust rallies in, at least not until we get some type of major weekly turnaround signal, something that we are quite some distance away from.
NATGAS Video 14.02.20
Looking at this chart, it’s obvious that there is a lot of negativity attached to natural gas, and quite frankly there should be. The oversupply of natural gas continues to be a major problem and of course there are more than enough drillers out there to keep this being the case. However, it’s only a matter of time before we get a massive amount of bankruptcies it could change the dynamics of the market but that is something that will play out over the course of the year. Cold temperatures are all but gone now, and therefore rallies are to be mistrusted. Ultimately, this is a market that should continue to find plenty of sellers above and that’s exactly how you should be playing it, fading signs of exhaustion as soon as they occur.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Gold Price Forecast – Still Expecting $1700 In March
- Crude Oil Price Update – Strengthens Over $51.95, Weakens Under $50.99
- S&P 500 Price Forecast – Stock Market Continues To Show Resiliency
- Crude Oil Forecast – OPEC Pushing for Cuts, U.S. Crude Stocks Jump
- Natural Gas Price Forecast – Natural Gas Markets Continue To Rebound
- Coronavirus, Powell and Gold