Natural Gas Price Forecast – Natural gas markets continue to bounce from low levels

Natural gas markets sleep well on Tuesday but didn’t see a little bit of a reprieve later in the day. The $2.50 level continues to be significant support, from not only a short-term standpoint but also a longer-term standpoint at this point in time, if we were to break down below that level, I think fresh selling would come into the market and things could get rather ugly. I would anticipate a move to the $2.25 level, and then possibly the $2.00 level. A break of the $2.50 level would be catastrophic for the price of the commodity.

NATGAS Video 29.05.19

In the short term I would be surprised at all to see this market try to bounce back towards the $2.60 level. One thing that I would pay attention to is that the market is essentially grinding sideways there were also needed to play “small ball”, meaning that we need to look for small movements and not long-term trades. With that in mind, I think you should pay attention to every $.10 as far as support and resistance. You may have to trade off of the hourly chart or even the 15-minute chart to achieve this, but there are traits to be had in these types of markets.

On significant interest is the $2.70 level, because it has significant structural resistance and based upon trading for just a couple of weeks ago. At this point I think it’s easier to simply sell rallies as they come and take profits relatively quick.

Please let us know what you think in the comments below