Natural Gas Price Forecast – Natural Gas Markets Break 50 Day EMA
Natural gas markets rallied a bit during the trading session on Tuesday, breaking above the 50 day EMA. This of course is a strong sign, and it does look like we are going to go looking towards the $2.80 level. The $2.80 level has been significant support in the past, so it should be a little bit resistive. If we can break above there, then the market is likely to go looking towards the $3.00 level. There is a slight gap above that level, so I think it is possible that we should see plenty of resistance in that area.
NATGAS Video 23.12.20
The market of course is going to be very noisy as it is the middle of the Christmas season, and that of course means that we can have violent and erratic movement. That being said, as long as we continue to see back-and-forth behavior, I think it is only a matter of time before we get opportunities to buy dips as it is the coldest time of year. Do not get me wrong, I realize that it could be a little bit warmer this year than in the past, but there will be a significant amount of demand.
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Eventually, if we break higher, then we can see signs of exhaustion it is likely that we could go much lower as soon as we start to focus on warmer temperatures, which will be in about a month. That being said, the market is likely to continue to see a short-term burst, but there is much more money shorting this market once the warmer temperatures hit.
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