Natural Gas Price Forecast – markets takeoff during Wednesday session

The natural gas markets rallied significantly during the trading session on Wednesday, reaching towards the area above that as it is a bit of a magnet, but I think that it is going to continue to be an area that people will pay attention to. I think that if we do break above the $3.00 level, we can go to the $3.10 level after that, but I think it’s only a matter of time before we show signs of exhaustion. No signs of exhaustion could be nice selling opportunities, as I believe that longer-term we need to keep in mind that the natural gas markets have more than enough supply.

The $2.90 level underneath is support and has been the scene of significant buying pressure. However, if we break down below that level I think that the market should then go to the $2.85 level after that which of course is massive support. I think that if we break down below there, the market could then go to the $2.80 level after that. I expect to see a lot of volatility regardless, and I think at this point it’s very likely that we will continue to see significant noisy moves, and I think that the prudent trader will keep their position size small, perhaps using the CFD markets. The futures markets will probably be far to drinkers to be involved in. Overall, I think that you should be quick to take profits as well as we continue to see a back-and-forth market.

NATGAS Video 14.06.18