Natural Gas Price Forecast – Natural Gas Stalls at 50 Day EMA
Natural gas markets have rallied a bit during the trading session on Wednesday to reach above the 50 day EMA but found plenty of sellers just north of it. That being said, the market looks as if it is ready to continue to chop sideways, perhaps before breaking down further. After all, natural gas will be in low demand season very shortly, as temperatures in the northern hemisphere rise. While that is not the only thing going on, it is by far the most important thing going on.
NATGAS Video 15.04.21
Natural gas markets of course have been very choppy as of late but if we were to turn around a break down below the 200 day EMA, that could convince me to start selling again, and perhaps aiming for lower level such as the $2.25 level, possibly even down to the $2.00 level. This time of year, I have no interest whatsoever in trying to buy natural gas, because quite frankly the demand will not come anywhere near the massive oversupply that we see on a regular basis.
With that being the case, I think what we are looking at is the possibility of a significant break down going forward, but this is a seasonal trade, and a lot of traders will have already known that. With that being the case, I think it is only a matter of time before one has to look at the possibility of fading rallies going forward, as it has certainly worked recently. Natural gas continues to be abundant, and therefore not necessarily something that demand is not taken care of.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
