Natural Gas Price Forecast – natural gas continues the slow grind lower

Natural gas markets rallied a bit during the trading session on Wednesday, bouncing from the $2.74 level, and I think at this point it’s likely that the rally will only end up offering a nice selling opportunity given enough time. At the first signs of exhaustion, I’m willing to short this market, and I believe that we will go looking towards the psychologically important level of $2.70 below. The market has a massive amount of resistance above, especially in the form of $2.85 which is a massive level on short-term charts.

I think that the market is eventually going to go looking towards the $2.70 level, and then after that down to the $2.60 level which is even more important. I continue to sell rallies as they downtrend has been so dominant, and persistent. Because of that, I think that we will eventually see to break down and I think that the short-term traders are attracted to higher levels as there is so much in the way of supply out there and of course that is reflected in price. The US dollar has been strengthening overall, and although it is a minor influence, it does of course have an influence.

There are also concerns about global growth, and that of course works against the idea of energy consumption. That more than likely will also have traders jumping into the marketplace in shorting natural gas yet again as we have so much bearish pressure.

NATGAS Video 19.07.18

Natural gas markets did rally a bit by the time I recorded this on Wednesday, but at this point it looks as if we are in a nice downtrend in channel, and I think it’s only a matter time before the sellers come back in and start pushing lower.