Natural Gas Price Forecast – natural gas markets bounce from bottom of wedge

Natural gas markets bounced a bit during the session on Tuesday, showing a resilience when it comes to the wedge that has been part of this market. We have recently rally due to the cold temperatures and the extreme drawdown of supply in the United States, but keep in mind that it’s only a temporary phenomenon. Quite frankly, as soon as warm temperatures come back to the USA, we will more than likely see a plummet in this market.

NATGAS Video 05.12.18

Beyond that, there is more than enough natural gas in the United States to keep this market cheap. After all, the United States has over 14,000,000,000,000 ft.³ of natural gas in the ground. Ultimately, I think that every time this market rallies suppliers will be more than willing to come in and dump as much supply as they can get their hands on. I believe that the $5.00 level above is massive resistance, and I think it’s a major psychological barrier that the markets will struggle to get above. If we did get above there, then it would be an extraordinarily bullish sign, but I think it’s only a matter time before the sellers return on signs of exhaustion, and therefore I am looking to shorter-term charts for signs of shooting stars, and other things like that so I can fade rallies as they appear. I believe that the $4.00 level underneath is short-term support.