Natural Gas Price Forecast – Natural Gas Markets Consolidate

Natural gas markets went back and forth during the trading session on Thursday, as the market simply don’t have anything to do. The oversupply continues to be a major issue, as the $2.20 level has been a major resistance barrier. If we can break above there, then it’s likely we will go looking towards the 50 day EMA above, which is now just below the $2.35 level. At this point, it looks as if any rally at this point will probably be thought of as a selling opportunity, because even though the markets are extraordinarily sold off, the reality is that the supply is just far too overwhelming for buyers to take out.

NATGAS Video 10.01.20

To the downside, the $2.00 level underneath will be massive support and I think it will be difficult to break through. In general, I believe that we are going to continue to grind sideways in this general vicinity, between the $2.20 level on the top and the $2.00 level underneath. In other words, the $2.10 level looks to be “fair value” at the moment. Even though we will get inventory numbers out in America, quite frankly nothing can let this market because not only do we have an oversupply issue, but we have warmer temperatures in the United States than usual this winter. That is a death sentence for natural gas markets. Granted, we will eventually get some type of pop to the upside, but it will be extraordinarily difficult to hang onto that move. It’s going to be much easier to sell into it.

Please let us know what you think in the comments below