Natural Gas Price Forecast – natural gas markets bounce on Tuesday

Natural gas markets bounced a bit during the day on Tuesday, showing signs of resiliency near the $3.00 level. Ultimately though, this is a market that is very bearish. However, at these extraordinarily extended low levels, one would have to think that we are overdone.
Christopher Lewis
Natural gas daily chart, January 09, 2019

Natural gas markets rallied a bit during the trading session on Tuesday, as the $3.00 level has attracted a certain amount of attention. Because of this, I think that we will probably continue to see a lot of noise in this market, but the gap above I think needs to be filled. I’m looking at any rally as an opportunity to do just that, fill the gap. That would send the market towards the $3.30 level, perhaps even higher. The $3.50 level for me is still massive resistance as well, so I think that given enough time we will see a bit of a bounce. I will not take that bounce, I will look at that bounce as an opportunity to start shorting again.

NATGAS Video 09.01.19

We are just simply far too low at this point to jump to the downside, shorting at this point would be a “chase the trade” scenario. That’s an excellent way to lose money in the markets, something that you certainly don’t want to do. That being said, it will take a certain amount of patience, but I do think that the die has been cast, and that the seasonal bullish pressure is all but over. Any rally’s at this point will probably be short-lived at best, perhaps of the relief variety. You might as well be patient enough to wait for higher levels to start selling so that perhaps you can pick up a bit of momentum in the market.

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