Natural Gas Price Forecast – natural gas markets break down on Monday

Natural gas markets broke below the $2.90 level, a major support barrier that has been part of this market for a while now. Now that we are below this area, I believe that the market is free to start to unwind, perhaps reaching towards the $2.85 level underneath. However, if we were to turn around and break above the $2.91 level, that would wipe out the downside momentum, at least for the short term. I do believe that natural gas will continue to fall longer-term though, so therefore I’m looking for rallies to sell again.

We are just starting to fall from a range of resistance on the longer-term charts, so that guides my opinion of this market. I believe that we will probably go looking towards the $2.70 level longer term, but obviously that’s not going to happen overnight. Looking for selling opportunities will continue to be the way I look at this market, but if we do break out above the previously mentioned $2.91 handle, then I start to look for selling opportunities closer to the $2.93 level, and then the $2.96 level. At this point, we are far too elevated in the overall consolidation to think about putting fresh money to work. This consolidation trait has worked for quite some time, so at this point I don’t see that it’s going to change. Overall, I’m unlikely to change my opinion, as there is far too much in the way of supply out there to allow natural gas markets to rally for the longer-term.

NATGAS Video 28.08.18