Natural Gas Price Forecast – natural gas continues to look sluggish

Natural gas markets rallied slightly during the day on Friday, but the key word here is slightly. With, it’s likely that we will continue to see sellers jumping in this market and short every time there are signs of exhaustion, because quite frankly there is far too much in the way of supply. The three dollars level above has been a major “ceiling” in the market, and I don’t think we are able to go above there anytime soon. If we can break below the $2.80 level, the market is free to go to the $2.70 level, and then eventually the $2.60 level. I prefer to wait for bounce is to start shorting, as this market is rather volatile, and tends to think in matter of days, and not longer-term.

At this point, I do not expect the market to be able to break down below the $2.60 level, so I would expect longer-term buyers to come in support the market somewhere in that general vicinity. Overall, this is a market that continues to be range bound, so using range bound trading system. We are currently roughly just above the middle of that range, so expect a lot of noise. You small positions if possible, and then add once the market works out in your favor. It is because of this that I prefer the CFD market.

NATGAS Video 09.07.18