Natural Gas Price Forecast – Natural gas markets rally to close out the week
Natural gas markets initially tried to fall during the day on Friday but found enough support just above that the $2.50 level to bounce enough and reach towards the $2.57 level by the time I wrote this article. I do believe that we continue to go a bit higher, if nothing else just simply because we are oversold. This could be a bit of a “relief rally”, and therefore I be very quick to get rid of any long positions start to lose money. Obviously, with the downtrend that we have seen is much easier to short this market, but when you backout you recognize that the $2.50 level is the bottom of a longer-term range that we have been bouncing around in for years, with of course the exception of the winter months in the United States.
NATGAS Video 29.04.19
To the upside I see the 50 day EMA which is presently trading at the $2.73 level as being significant resistance. I’d be a bit surprised if we broke above there, but if we did then I think we would probably go to the $2.90 level. All things being equal, I think that we get a little bit of positive momentum in the short term, but it will only be a matter time before the sellers jump back in and start punishing the rally again. With that, it comes down to your comfort, but it’s probably going to be easy to simply fade rallies at higher levels.
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