Natural Gas Price Forecast – Natural Gas Attempting to Fill Gap

Natural gas markets have turned around quite decisively during the trading session on Tuesday as we go looking towards the 200 day EMA. That being said, the market is likely to continue to try to fill the gap, and perhaps even go higher. Ultimately though, this is going to be a selling opportunity given enough time, as we have quite a bit of negativity in this market. Even if we did significantly rallied this point in time, I have completely given up on the idea of going long, even though there still could be “one last hurrah” for natural gas during the winter months.

NATGAS Video 30.12.20

The weather forecasts in the United States is for warmer temperatures in January, and that of course works against the value of natural gas. Ultimately though, there is far too much natural gas out there right now, and if we do not have cold temperatures to drive up demand, that should clearly show just how bearish this market is going to be. At this point, I think it is much more efficient and quite frankly safe, to fade signs of exhaustion above.

The 50 day EMA at the $2.70 level would be very interesting, but that is assuming that we blow through the gap that has formed. Regardless, I think it is only a matter of time before we get sellers jumping in to push this market lower. From a structural point of view, natural gas is a commodity that should be sold most of the time, and therefore most of the money will be made shorting this market after pops to the upside.

For a look at all of today’s economic events, check out our economic calendar.