Natural Gas Price Forecast Today - 26/02: Gas Drops Friday
Date
2/27/2024 2:55:55 AM
(MENAFN- Daily Forex)
Friday's trading session saw a decline in the natural gas markets as there is still a lot of negativity. Nevertheless, even though we are approaching the primary support level, buyers can still expect significant difficulties in the market, as there is not real momentum at the moment.
Natural Gas Drops Again on Friday as Bulls Cannot Turn Things Around
If you look at the
Natural gas markets, you can see that we have dropped significantly during Friday's trading sessio and that it appears we are about to drop further. I believe that the $1.50 level beneath will serve as a significant level of support. And a great number of people will be observing it closely.
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At this juncture, short-term rallies will still present selling opportunities because the $2 level and the 20-day EMA above serve as resistance. It's a fade the rally market right now, but if we can break above that, we might be able to move higher.
In order to go long, longer-term traders who are more likely to buy and hold could want to look for an ETF of some kind. You don't seem to want to be in a scenario like this. Though there might be a scenario where we have a storm that produces a rise between now and the end of winter, that's probably as good as it gets.
Given that natural gas is currently very abundant, and that storage is limited, I believe that the only scenario that could potentially lift natural gas would be if drillers decided to give up because it would not be profitable for them to continue.
Having said that, I believe it is important to pay attention to $1.50 because, frankly, if it falls lower, who is left to buy from? That could be said right now. I doubt that I would short this market in the near future. Since we are at historically low levels and some people will be interested, I anticipate some base building between now and then. Above $2 could bring in some FOMO to $2.50. But these days, when it comes to trading natural gas , discretion really is the better part of valor.
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