Natural Gas Price Forecast – Natural gas markets continue to drift lowerNatural gas markets continue to drift lower overall as we bounce around in our well-defined range again. With a horrifically bearish inventory number, it makes sense that we saw in more selling during the day on Thursday.
Natural gas markets fell rather hard during the day on Thursday, as we continue to see a severe lack of demand and even saw a massive build which was 10 times what it should have been on Thursday. It doesn’t get much more bearish than that, so therefore it makes sense that the market drifted a bit lower. Given enough time, it’s very likely that we are going to see this market test a major support level underneath which starts at the $2.60 level. With that being the case, I’m looking for a bounce or some type of opportunity to buy the natural gas markets closer to the $2.60 handle.
NATGAS Video 05.04.19
To the upside, there is a massive amount of resistance asserts at the $2.90 level that extends to the $3.00 level. Overall, I believe that we stay within the trading range that is so well defined, as we are leaving the high demand season for natural gas, and it is over abundant to say the least. Ultimately, this is a market that bounces around back and forth looking for direction, and I think quite frankly we have found two great areas to play back and forth for an attempt to continue to trade this market from short term perspectives and take advantage of obvious levels. If we were to break out of these levels, then obviously the market would change drastically, and could really start to move in one direction or the other. Until then, short-term trading continues going forward.
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