Natural Gas Price Forecast – Natural Gas Markets Continue to Test Support
Natural gas markets gapped lower to kick off the trading week, showing signs of weakness yet again. At this point, the $1.60 says level looks to be offering quite a bit of support, and I do think that we probably bounce from here a little bit. I don’t necessarily think that anything is going to change longer term though, and there are a couple of areas that I would love to start shorting at. The $1.80 level is the first major resistance barrier that I see, so any time we get close to that level I would be a seller. If we do break above there somehow, then the $2.00 level would be your next barrier to overcome, something that would be extraordinarily difficult to do. Because of this, I believe that will be the “ceiling” to the market.
NATGAS Video 31.03.20
Furthermore, the 50 day EMA is at the $1.85 level, and that of course could come into play by the time we bounce towards the $1.80 level, making it for my money a very likely short opportunity as for those who can be patient enough to wait for that move. If we were to break down below the $1.60 level, we could go down to the $1.50 level but that seems to be very unlikely at this point. After all, we have been banging on the door of $1.60 for a while it seems to be holding. It is not until we get enough bankruptcies in the United States when it comes to fracking companies that this market will be able to take off.
This article was originally posted on FX Empire
