Natural Gas Price Forecast – natural gas falls again on Friday

Natural gas markets initially trying to rally during the day on Friday but turned around at the $2.81 level to roll over completely. It looks as if the market is ready to go much lower, perhaps reaching down to the $2.75 level, possibly even lower than that. The longer-term outlook for the market is negative overall as we have far too much in the way of oversupply. A strengthening US dollar could of course weigh against the natural gas markets as well. I believe that selling rallies will continue to work, and that the $2.60 level underneath is a massive support level based upon the longer-term consolidation.

I believe that the market will continue to find plenty of reasons to short, not the least of which will be concerns about trade wars, which eventually will drive down demand for energy from manufacturers. I believe that the $2.85 level above is going to be massive resistance, and I think that it would be very difficult to break above there and continue to go any higher. I think short-term traders will continue to flock to this market, but they will most certainly try to push lower, and not necessarily pick up this market. Every time we bounce, I’m looking for signs of exhaustion to short this market again in the futures market. I have no interest in buying, I think this is far too much in the way of negativity out there to get involved.

NATGAS Video 16.07.18