Natural Gas Price Forecast – natural gas markets failed to break out
Natural gas markets gapped higher to start the session on Tuesday, but then rallied towards the $2.75 level. That’s an area that has previously been massive support, as well as resistance. We turned around to roll over and form a bit of a shooting star, and I think that this market is likely to continue to fall slightly, but overall it’s only a matter of time before the buyers come back in and pick this market due to the oversold condition that we are in. If we can break above the $2.75 level, the market should continue to go higher, perhaps reaching towards the $3.00 level and the 200 day EMA.
NATGAS Video 13.02.19
Overall, this is a market that is very likely to find sellers on these rallies, as the oversupply of natural gas will continue to be a major issue. Beyond that, there is a lack of global growth out there that could cause this market to continue to struggle. After all, if the global growth situation continues to deteriorate, there will be less demand for energy in general, natural gas not being spared. At this, I believe that it’s only a matter time before the sellers will look to punish this market if it gets a little bit too bullish. I do expect a short covering rally, and that could be your signal. However, I’m more interested in shorting this market closer to the $3.00 level or even higher than that.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
