Natural Gas Price Forecast – Natural gas market continues to consolidate

Natural gas markets fell during trading on Wednesday, reaching towards the $2.70 level and what has been overall consolidation. To the downside, I see the $2.60 level as the beginning of major support that extends down to the $2.50 level. Above here, I see the $2.90 level as the beginning of resistance that extends all the way to the $3.00 level.

NATGAS Video 28.03.19

With all that being said, I think we are simply drifting down towards the support and will be able to start looking at buying a bounce as it appears. To the upside, if we do rally from here I’m more than willing to start selling at the first chance we get. Obviously, if we were to break above the $3.00 level that would be rather significant, just as a break below the $2.50 level would be. Looking at this chart, I think it’s very unlikely we do that and I believe that we are going to continue to see a lot of choppiness and back-and-forth trading that we can take advantage of.

There is an oversupply of natural gas for the market, and therefore it’s very likely that the market will struggle to break out to the upside. However, on the other side of the equation we have a significant amount of support, and it has held up for quite some time. With that being the case it’s very difficult to imagine a scenario in which we break down through there, but if we did it would obviously be very catastrophic.

Please let us know what you think in the comments below