Yahoo Finance Natural Gas Price Forecast – Natural Gas Markets Soften To Start Week
Natural gas markets pulled back just a bit during the trading session on Monday, as the $2.20 level continues offer a lot of interest. That being said, we are at extraordinarily low levels and are trying to bounce a bit. Having said all of that though, I still like the idea of shorting this market on signs of exhaustion after a bounce. The 50 day EMA is likely to cause resistance at the $2.32 level. Even if we break above there it, the market will then probably find significant resistance near the $2.40 level. Simply put, the natural gas markets have been a disaster this winter for anybody trying to be bullish, either trader or company, and this of course is going to continue to be a major problem.
NATGAS Video 14.01.20
The area between $2.20 and the $2.00 level, there should be plenty of support in that general vicinity. If we were to break down below the $2.00 level, it would be extraordinarily bearish. All things being equal, I look at bounces as an opportunity to take advantage of what is a strong downtrend. The Americans drilled 17% more natural gas in 2019 than they did in 2018, and then of course the winter has been very mild. The longer-term outlook for natural gas has changed drastically over the last couple of years, and therefore it’s likely that we will see natural gas continue to be a “sell on the rallies” type of market for years to come. This was very much like gold was in the 1980s.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
