Yahoo Finance Natural Gas Price Forecast – Natural gas markets rallied slightly on Thursday
Natural gas markets rallied a bit during the trading session on Thursday, showing signs of life again. However, this is a very bearish market so I like the idea of selling short-term rallies that show signs of exhaustion. That worked quite well over the last couple of days, and at this point it’s more than likely going to see even more selling pressure at the $2.65 level. Signs of exhaustion could be an opportunity to take advantage of the market rolling over again, something that I fully expect.
NATGAS Video 24.05.19
The $2.50 level underneath is massive, and as a result it’s likely that the buyers will be waiting at that area to perhaps defendant natural gas markets. This is a market that has massive support near that area built in from longer-term traders, and of course industry insiders defending as well. Keep in mind that the markets remain volatile and of course they are a bit thin as natural gas markets can be.
If we were to break above the 50 day EMA, which is pictured in red, we could go to the $2.80 level. However, I don’t think that’s very likely considering the time of year, so it’s very likely that what we will see is short-term rallies that are traded against. If we do break down below the $2.50 level, it’s likely that we could go down to the $2.25 level after that. Expect volatility, keep your position size small, but most decidedly look for short opportunities.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
