Natural Gas Price Forecast – Natural gas markets collapsed againNatural gas markets simply can’t stop falling, which is why over the last couple of days I had suggested that perhaps breaking down below the $2.30 level could be a selling opportunity as well. Quite frankly, this is a runaway market so caution will be needed.
Natural gas markets fell yet again during the trading session on Thursday, as we continue to see a lot of exhaustion in demand and of course concerns about the global economy if the Federal Reserve is looking to cut interest rates. Overall, this is a market that will continue to show selling pressure, and quite frankly I would not want to catch this falling knife. It’s very likely that we will go down to the $2.00 level underneath, which is a large, round, psychologically significant figure that attracts a lot of attention.
NATGAS Video 21.06.19
Bounces at this point are necessary to start selling again, because we have gotten ahead of ourselves. That being said, there is a good chance that the natural gas markets will be the trade of the year once we get closer to the $2.00 level. This is very dangerous, but as we get towards the end of summer in the beginning of fall, you should start to see natural gas demand pick up which of course should drive prices higher. Quite frankly, in the years that I have been following the energy markets this has been one of the more vicious collapses, because not only do we have the seasonal effect but we have concerns about global demand. If the economies around the world slow down, it’s very likely that natural gas demand will continue to fail to catch up to the oversupply of this commodity. There is nothing good-looking about this chart.
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