Natural Gas Price Forecast – Natural gas continues to show weakness

Natural gas markets have been consolidating for some time now, between the $2.90 level on the top and the $2.60 level on the bottom. Looking at the chart, you can see that there is a $0.10 range at both of those levels that keeps the market somewhat contained. I believe at this point it’s very likely that the market will continue to respect those levels, and as we are getting close to the support level, I think that it’s very likely that a bounce could be coming. This doesn’t mean that I’m willing to jump in right away, but I am certainly looking to see what happens at the $2.60 level.

NATGAS Video 15.04.19

If we were to break down below the $2.50 level, then I think natural gas could be an extreme trouble. That is a major support level on longer-term charts, and of course means that it’s crucial to our trading analysis. A short-term bounce is probably all we will get in the natural gas markets, so this is the least exciting of trades. I much more interested in fading rallies above, especially if they get all the way to the $2.90 level. I don’t even know that will see that in the next couple of months, but if we do I more than willing to jump in and hit the market hard to the downside. All things being equal though, I do believe that we stay in this range.

Please let us know what you think in the comments below