Natural Gas Price Forecast – natural gas markets break below support

Natural gas markets continue to be very negative overall, breaking down below the $3.20 level. By doing so, it looks as if the sellers are trying to return, but the $3.15 level offers minor support, perhaps the bottom of the overall range. At this point, I think if we can break down below the $3.15 level, then natural gas will probably return to the overall consolidation that we had previously been in, perhaps granting all the way down to the $2.85 level before it said and done. Overall, I think that perhaps there are concerns about a warmer than usual winter in the United States, as an “El Niño” pattern seems to be forming. If that happens, then it’s very likely that there will be a lack of demand for heating in the northeastern US.

NATGAS Video 30.10.18

At this point, it’s likely that we will see volatility regardless, but if we do break out to the upside again, then the $3.40 level above will be resistance. Recently, we have formed a shooting star and have not been able to break the top of it. I think this shows that we are starting to see significant bearish pressure in general, but at this point I think that one thing you can probably count on more than anything else is going to be volatility. Natural gas markets focus on short-term weather patterns more than anything else so pay attention to those, and of course the inventory figures every week.