Natural Gas Price Forecast – Natural gas markets continue to drift lowerNatural gas markets drifted a little bit lower on Thursday, as we continue to see resistance above in what has been a very bearish market.
Natural gas markets drifted a little bit lower during the trading session on Thursday, reaching towards the $2.80 level. Every $0.10 or so, the natural gas markets will react as it seems to be fixated on these levels. However, the $2.80 level isn’t a major one, it is simply a mile marker on the journey. Rallies at this point should continue to be sold on signs of exhaustion, as the $2.90 level above is the beginning of significant resistance. In fact, I think that represents the beginning of major resistance running all the way to the $3.00 level. I would be a bit surprised to see this market break above there, so I’m willing to sell rallies between here and there the show signs of exhaustion on short-term charts.
NATGAS Video 22.03.19
That being the case, I like the idea of selling this market every time it rallies but I also recognize that it will continue to be very choppy. That’s just a fact of life at this point. Short-term trading continues to be the best way to trade natural gas as it will quite often be fixated on the weather for the next week or so. With that in mind, I simply look for selling opportunities and don’t press the issue. This is a market that I come back to it several times, but not every day. I’m not looking to make an investment, this is simply a trade. The $2.50 level underneath is going to be massive support and is going to be very difficult to break down through it. Expect noise, but bearish noise at that.
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