Yahoo Finance Natural Gas Price Forecast – Natural gas markets have nice rally early on Thursday
Natural gas markets rallied significantly during the trading session on Thursday, as we continue to see natural gas try to form some type of base. It’s a little early in the year to expect a rally to stick, so I like the idea of selling these pops in the market at the first signs of trouble. Ultimately, I think that the market will eventually find plenty of reason to break down, not the least of which of course is going to be massive oversupply of natural gas in the United States. Beyond that, I believe that we are far too early in the year to expect a larger move to the upside.
NATGAS Video 16.08.19
With that being said, there is also the 50 day EMA above that should cause quite a bit of resistance, not to mention the fact that there is a major downtrend line. With that being the case I think it’s only a matter time before we reach below the $2.20 level. At this point, I’m looking to short-term charts to start selling again, as I believe this market will break down. I still believe that the market is going to try to go down to the $2.00 level, an area that will attract a lot of attention due to the fact that it is large and round and whole. Ultimately, I think that we are looking to buy this market a little later in the year, perhaps during the month of November as it is a cyclical trade.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
