Natural Gas Price Forecast – chop chop chop

Natural gas markets were very choppy during the trading session on Tuesday, essentially going nowhere in the pit session. The $3.05 level seems to be significant resistance, and I think that it’s only a matter of time before we have to test that level for a break out. If we do get that move, then we will probably go looking towards the $3.20 level based upon historical charts. If we break down, that the $3.00 level should offer support. However, I think the one thing that’s going to be a problem is that so many markets are interconnected now that you never know if somebody is selling their natural gas position to cover a loss somewhere else.

This is the time of year that we do tend to see bullish pressure in the natural gas markets though, as we are approaching the cold months in the United States. This generally will give traders a reason to pick up natural gas, as the reports will for the most part be overall a bullish event. However, this is a short-term phenomenon, and by the time the calendar changes to the month of January, we started selling off again. At least this has been the pattern over the last several years. I believe that ultimately this is a market that demands a lot of short-term trading, so if you don’t have the ability to stick to the small time frames, you should probably stay away.

NATGAS Video 26.09.18