Natural Gas Price Forecast – Natural Gas Markets Hovering at 50 Day EMA

Natural gas markets have gone back and forth during the course of the trading session on Monday, hovering above the 50 day EMA. The 50 day EMA currently sits at the $5.19 level, it looks as if it is going to continue to be of some importance. At this point, more of a “buy on the dip” scenario is in this market, especially as we enter the caller part of the year. That being said, the market is likely to see a lot of noisy behavior, but I think the fact that the $5.00 level underneath offers quite a bit of psychological support as well. Nonetheless, this is a market that still has a lot of pressure on it, so I think that we will see a lot of noisy behavior.

NATGAS Video 02.11.21

The market recently formed a bit of a double top, but it is not confirmed yet. To think that this is the end of the bullish run of natural gas is a bit of a stretch, but I suppose it is possible that the market needs to correct rather drastically. Because of this, I would not get involved in this market to heavily, meaning that I would keep my position size somewhat reasonable, and only add as the market starts to rally again. Keep in mind that natural gas does tend to be very volatile, and of course there are a lot of concerns out there when it comes to the idea of a slowdown. The question now is not so much as if we are slowing down, but rather or not it is just pulling back from extreme momentum after the reopening.

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