Natural Gas Price Forecast – Natural Gas Continues to Pressure Resistance
Natural gas markets have shot straight up in the air again during the trading session on Friday, as it looks like they still enjoy the “knock on effect” from the overall commodity bullish run. Because of this, I believe that what we are seeing here is a market that is trying to break out, but the reality is that it is probably one of the least favorite commodities out there, with perhaps the exception of gold. If we can break above the $3.40 level, then it is possible that we could really start to accelerate at that point, but that being said I am still little bit hesitant to buy this market when you can simply buy crude oil instead.
NATGAS Video 14.06.21
If we turn around a break down below the $3.20 level, then it is likely that the market could go looking towards the $3.10 level, followed by the $3.00 level. At that point, the 50 day EMA comes into the picture, which could offer a little bit of support, so that could be an area where we see a big fight. That being said, the candlestick for the Friday session is closing towards the top, so that certainly threatens the upside.
Your capital is at risk
A lot of this comes down to the idea of inflation, and people are simply buying “things” in order to get away from the depreciating currency. There is also the argument that there will be much more demand coming out of industry as we reopen, but at the end of the day it is only a matter of time before the supply and demand imbalance comes back into the picture. In the short term though, we could get a pop.
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