Natural Gas Price Forecast – Natural Gas Continues to Look Very Weak

The natural gas market continues to see a lot of selling pressure, as the season is typically very negative for the natural gas markets, as heating demand plummets in the United States.

Natural Gas

Natural gas continues to bump along and see selling pressure. The natural gas market has been very noisy, to say the least on Thursday as we have broken below the $2.75 level, an area that truly matters.

Natural Gas daily chart. Source: TradingView

This of course is a level that I think a lot of people have been watching and with that being the case, now that we have broken below it, we could see a bit of an unraveling towards the $2.50 level.

Rallies at This Point End Up Seeing the $3 Level as a Massive Barrier

Perhaps an area where we could get short on any type of rally. All things being equal the natural gas markets are in the lowest demand part of the year as traders will be looking at the fact that quite frankly it’s not that cold in the United States.

No Near-Term Help From European Demand

Most people forget this is a US contract and despite the fact that there are a lot of concerns about disruption to the European Union, we are not at the time of year where the Europeans will be trying to pick up a lot of US exports. In other words, there is no longer-term help coming at the moment in this market.

So, I remain bearish at least for the next couple of months. I’ll look at any rally as a shorting opportunity. I don’t necessarily like chasing shorts all the way down here, so a little bit of patience probably goes a long way in order to offer enough room to get short again as the risk to reward situation would be better than now.