Natural Gas Price Forecast – natural gas markets turn around on Wednesday
Natural gas markets gap lower to kick off the trading session on Wednesday, reaching down towards the 20 day EMA, pictured in green on the chart. However, we turned around and rallied rather significantly. I believe this is based upon the cold snap in the United States, which would be a short-term phenomenon. The $3.75 level continues to offer resistance above, so I think it makes sense that the market participants will continue to short in that region. I think that natural gas is rather abundant, so it is more than likely going to be a matter of time before we can start selling again.
NATGAS Video 17.01.19
The gap below has not been filled, so therefore I think it needs to be filled given enough time, but we also need less frozen temperatures in the northeastern United States as it is a major consumer of natural gas. If we do break above the $3.75 level, then the $4.00 level will be the next major resistance barrier. I think it’s only a matter time before we roll over and start shorting again, so I am cautiously waiting for some type of opportunity to press lower. If we break down below the 20 day EMA, then I would short there as well. I have absolutely no interest in buying natural gas, although I recognize that there is a lot of upward momentum on the short-term charts currently. The key words of course are “short term.”
This article was originally posted on FX Empire
