Natural gas markets continue to chop around just above the psychologically and structurally important $1.80 level. Ultimately, this is a market that should continue to see a lot of back and forth noise, as the market simply haven’t gone anywhere of the last couple of weeks. Quite frankly, we are at extreme lows but also don’t have much in the way of demand at the same time. With that, there isn’t much for this market to do because the oversupply issue continues to be a major problem. The solution is going to be bankruptcies in the United States but that will take some time.
Any rally at this point should run into a ton of resistance near the $2.00 level, assuming that it can even get there. Furthermore, the $1.90 level seems to be offering resistance in the short term as well. Rallies at this point continue to be sold, and it does look like the $1.80 level is offering support. If it does get broken down below, then it’s likely that the $1.60 level underneath it would be targeted as it is a large figure that offered a significant amount of support the last time it was visited. Furthermore, looking at the chart it’s obvious that the natural gas markets do pay quite a bit of attention to every $0.20, so that is another thing to pay attention to. The 50 day EMA is currently at the $2.11 level, and racing towards the $2.00 level.
