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Natural Gas Price Forecast – Natural Gas Markets Quiet To Close Out The Week

Christopher Lewis

Natural gas markets have gone back and forth during the trading session on Friday, as we continue to see a lot of concerns when it comes to natural gas demand and of course the massive oversupply. That being the case, the market is likely to continue seeing a lot of negative pressure given enough time. Ultimately, if the market does rally from here, I’m looking for some type of opportunity to fade this market on signs of exhaustion. Signs of exhaustion will be jumped on, and then go looking towards the lows yet again.

NATGAS Video 17.02.20

At this point in time, the market looks very likely to continue to see plenty of sellers as we simply cannot chew through the massive supply. Until we get some type of massive wave of bankruptcies, which certainly are coming for natural gas suppliers and drillers, the markets will remain depressed. Given enough time we should see that, but ultimately that’s a longer-term story. In the short term, it’s very likely that the $1.90 level will offer resistance, and then of course the $2.00 level which is also a large, round, psychologically significant figure. The 50 day EMA is drifting lower towards that area, showing signs of technical resistance as well. All things being equal, you cannot buy this market, at least not at this point although temperatures are starting to cool off again in the United States. It would take a Herculean effort to turn this market around, so quite frankly I think it’s easier to simply sell rallies that show signs of exhaustion.

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This article was originally posted on FX Empire

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