Natural gas price forecasts – Natural gas continues to rally but takes time

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Natural gas markets opened up on Tuesday, showing signs of resilience again. Going over the $ 1.80 level will get a lot of attention, and of course, the 50-day EMA is also there. The 50-day EMA tends to be quite important for the natural gas markets, so I think the rally is about to end. In addition, much of this will more than likely be based on the idea that the number of coronaviruses will drop, and then perhaps the world will return to work soon enough. It’s something that just won’t work. Even though the numbers are constantly falling, it is still a return to work process, not necessarily something that will happen overnight.

NATGAS video 08.04.20

At this point, the market is still in a downtrend, so I don’t want to fight that, mainly because there is so much in surplus that it is ridiculous. Beyond that, temperatures are starting to warm up in the northern hemisphere and of course, the coronavirus has also dropped. This is essentially a “perfect storm” when it comes to a bear market, and I think that will continue to be the case in the future. I’m fanning rallies and I have no interest in buying natural gas anytime soon. As I said before, it is only when we have a multitude of bankruptcies in the space that I would be comfortable buying this market.

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