Natural Gas Price Forecast – Natural Gas Markets Break Major SupportNatural gas markets initially tried to rally during the trading session on Thursday but then broke down below the $1.60 level, an area that had been so supportive recently.
Natural gas markets have initially tried to rally during the trading session on Thursday but then rolled over to break through the structurally important $1.60 level. This is an area that has been important for quite some time and breaking through here of course is a significant move. Now that the market has reached closer to the $1.50 level, traders will start to focus on whether or not we really can go much lower. I suspect that the bottom isn’t quite found, but we clearly are getting closer to it at this point. Natural gas has been in a massive downtrend for some time, and it makes sense that we should continue to see it look weak.
NATGAS Video 03.04.20
Rallies at this point are going to be selling opportunities but unfortunately, we are so low in price that we need to see some type of bounce to take advantage of. I don’t think we are going to be able to break out anytime soon, because quite frankly we need to see some type of wave of bankruptcies in the United States in order to see natural gas take off to the upside as the industry is so oversupplied at this point. Crude oil did get a bit of a bid to so that drove down the price of natural gas, based upon a tweet by President Trump. All things being equal though, I see plenty of resistance at the $1.60 level, $1.70 level, $1.80 level, and so on. Fading rallies will continue to be the best way to go, just as selling at this extraordinarily low level won’t be. You need some type of momentum and real estate to make a trade profitable.