Natural Gas Price Forecast – natural gas markets bounced slightly on Wednesday

Natural gas markets have bounced a bit during the trading session on Wednesday, showing signs of support at the large figure. However, I think that this is simply a function of being oversold, and I think if you are patient enough you should see an opportunity to start taking advantage of selling opportunities above at the first signs of exhaustion. I believe that the market will probably struggle to break above the $3.33 level, and most certainly will struggle at the $3.50 level. With that in mind, I believe that fading rallies continues to be the way going forward, and that we will eventually see this market break much lower, perhaps towards the $2.75 level, maybe even lower than that given enough time. If that is in fact the case, simple patient and waiting for signs of exhaustion will probably be the best way to play this market. After all, there is an oversupply of natural gas in general, and that isn’t going to change anytime soon from a structural standpoint.

NATGAS Video 24.01.19

If we did break above the $3.50 level, I suspect there’s even more resistance at the $3.75 level, possibly even the $4.00 level, but it would take a severe cold snap for that to happen. That being the case, I think that if you are simply patient enough to wait for the opportunity, it should present itself. The meantime, you are probably better off simply sitting on your hands and waiting for some clarity.