Natural Gas Price Forecast – natural gas has a hectic Thursday

The natural gas markets are quite dangerous at this point, because although we are obviously finding major resistance above, it seems as if the buyers are not quite ready to give up. The market participants continue to very skittish, and I think at this point the only thing you can do is to trade this market from a short-term perspective. That’s quite typical for the natural gas markets anyway, so I would not play for the longer-term move. The $2.95 level underneath is supportive, and I think that breaking below there will probably send this market down to the $2.90 level. However, at this point I’m not interested in buying, I would rather fade the rallies that occur between here and the $3.00 level.

There is a ton of supply out there waiting to come online at the $3.00 level, as so many of the fracking companies can benefit from that level. With that being the case, I think there is a bit of a ceiling in this market, and I think it’s going to be difficult to break above it. The bottom of the longer-term consolidation is down at the $2.70 level, so longer-term I think we go down to that level, but it’s going to be one crazy ride down to that level. As with silver, I believe that the CFD market is probably the easier way to trade this market.

NATGAS Video 24.08.18