Natural Gas Price Forecast – Natural Gas Bounces from Previous Support

Natural gas markets have initially fallen during the trading session on Thursday but found support at the $2.41 level which is the beginning of previous support. All things being equal, it looks as if we are ready to get a bit of a bounce, which I like because it will give you an opportunity to short the market when it gets a bit overbought again, as the fundamentals for natural gas are so horrible right now. As temperatures warm up in the United States, the demand for natural gas is going to absolutely plummet.

NATGAS Video 19.03.21

That being said, the market does not go in one direction forever and we are oversold by most metrics that I use. With that in mind, I like the idea of waiting for a bounce towards either the gap from the beginning of the week, or maybe if we get really lucky, we can see the market bounce towards the $2.70 level where we could start selling again. I will base this upon daily price action, so it is simply a matter of sitting back and waiting for an opportunity to short this market yet again. I have no interest in buying natural gas, at least not until sometime around October when demand starts to pick up yet again.

If we break down through the support underneath that I have marked on the chart, then I think the market could go down towards the $2.00 level, which of course is a large, round, psychologically significant figure. That probably causes a bit of noise in the market, but at this point in time I do think that is the target from the longer-term standpoint.

For a look at all of today’s economic events, check out our economic calendar.