Natural Gas Price Forecast – markets pulled back early on Monday

Natural gas markets continue to be very noisy, but overly a bullish position more than anything else. We have broken above the $3.00 level, which of course is a psychologically important victory for the buyers. I think there is a lot of resistance above, but quite frankly the top of the range is somewhere close to the $3.10 level. That level is even more resistance, and I think that the sellers will come back in hand over fist and that general vicinity. Keep in mind that this market tends to be very short term focus, so this means paying attention to weather reports out of the northeastern part of the United States.

If we were to break down below the $2.95 level, then the market probably will unwind towards the $2.90 level underneath. I have no interest in shorting until we break down below that level, or at least test the vital $3.10 level above. We have seen a nice march higher, and it appears that traders are willing to pick up short-term dips as value with the hot temperatures in the northeastern part of the US. This has rallied demand for the commodity in the short term, and I think that the short term focus the market tends to have will be reason enough to rally. We do have US dollar strength though, so that also works against the value of natural gas as the commodity is priced in that currency.

NATGAS Video 19.06.18