Natural Gas Price Forecast – Natural gas markets formed a shooting star
Natural gas markets initially tried to rally during the day on Friday but gave back some of the gains as the jobs report came out lower than anticipated. This could have people worried about potential demand for energy, which will of course have its influence in this market. Beyond that though, the 50 day EMA is starting to slope lower, and it is just above where we are right now. This suggests that certain technical traders will come in and short this market anyway, and that of course we have the gap above at the $3.00 level that I’ve been talking about for some time as a major resistance.
NATGAS Video 11.03.19
All of these factors, and the fact that we are in a downtrend to begin with, I’m only looking for selling opportunities. I think there might be one here, but don’t be surprised if we get a short-term pop in the process. To the downside, I suspect that somewhere around $2.50 there’s going to be a lot of support, as it is essentially the “floor” in the market right now. Using what we have, I simply look to short this market and try to aim towards that direction as well.
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As far as any rally from here concerned, they have to deal with that massive gap and the 200 day EMA is now just above it. I find it very difficult to think that this market will be able to break out above there, and would be quite shocked to see that happen.
Please let us know what you think in the comments below