Natural Gas Price Forecast – Natural gas markets continue to consolidate

Natural gas markets fell a bit during the trading session on Tuesday, breaking down below the 50 day EMA. However, we have seen a little bit of buying later in the day to show signs of support. At this point though, is very likely that selling rallies will continue to be one of the best ways to take advantage of this overall proclivity to sell. The gap lower on Monday shows that the proper direction for the week is negative, but we will get the occasional bounce. Those bounces are opportunities to take advantage of what has been a massive downtrend.

NATGAS Video 13.03.19

At this point, if we break down below the candle stick for the trading session on Tuesday, then it’s very likely that we could go down to the $2.70 level, and then eventually the $2.60 level as it is the beginning of a major support barrier on longer-term charts. To the upside, there is a major gap lower that kicked off the week, and of course we have the $2.90 level above which is the beginning of a $0.10 massive resistance barrier. Remember, the overabundance of natural gas has been a longer-term problem for this market, and I don’t see that changing anytime soon. Very likely we are going to see rally sold, so has that has worked for quite some time, until that changes this is a market that should only be sold. The question is whether or not you saw after a rally or a break down below the candle stick for the trading session on Tuesday.

Please let us know what you think in the comments below