Natural Gas Forecast – Natural gas markets do nothing on Independence Date

Natural gas markets did very little during the trading session on Thursday as it was a major holiday in the United States. Beyond that, we also have the jobs number coming out on Friday, so it’s very likely that we are going to see the market quiet until we get that figure at the very least. Looking at the chart it’s easy to see that the $2.30 level has been significant resistance recently, and I don’t think that we will be able to sustain any rally.

NATGAS Video 05.07.19

To the upside, there is a significant amount of resistance that extends to at least the $2.50 level, with barriers at the $2.40 level, and of course the $2.43 level as it is the 50 day EMA. This is a market that does not rally in summer very often, and at this point there’s nothing going on that would suggest that’s about to change. However, we could get a nice trade later in the year when we get closer to the colder months in the Northern Hemisphere.

To the downside I think that it’s very possible that we could make a move all the way to the $2.15 level, possibly even the $2.00 level after that. This is a market that seemed destined to fall during most of the last couple of weeks, and I don’t think that’s going to change anytime soon. I continue to fade rallies at the first signs of weakness, recognizing fighting this type of longer-term downtrend is foolish and dangerous to say the least.

Please let us know what you think in the comments below