Natural Gas Price Forecast – Natural Gas Gaps Lower

Natural gas markets have seen a gap lower to kick off the week on Monday, showing signs of negativity yet again. At this point, the market is very likely to continue to be very erratic and noisy, but we do have the 50 day EMA reaching towards the 200 day EMA but need to form a “golden cross.” This time a year is typically very bullish for natural gas but at this point in time we still have a lot of noise. At this point, there is still a lot of upward pressure, and if there’s any good news involving the US/China trade situation that should drive the market higher.

NATGAS Video 12.11.19

The market also has to deal with the fact that there has been stronger than anticipated output for natural gas drillers over the last year, so that is a major issue here, driving through the supply. The recent supply figures have been bearish, but we are getting to the point where the weather will catch up with it. Given enough time, it’s very likely that we get a significant bounce and continue to go higher. I don’t think it’s going to be an easy move, and obviously we have a lot of fighting to do but this time a year it’s almost dangerous to try to short this market, although as you see we can certainly pullback. Look for signs of support in a bounce to start buying, especially near the 200 day EMA level.

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