Natural Gas Price Forecast – Natural gas markets continue to drift lowerNatural gas markets dropped a bit during the session on Wednesday, breaking below the $2.40 level. That of course is a negative sign, but this has been a negative market for quite some time.
Natural gas markets drifted a bit lower during the trading session again on Wednesday, as we continue to see a lot of bearish pressure. Above current trading, we see the $2.50 level as a major ceiling, and it’s difficult to get above there. If we were, then the market probably has to challenge the $2.60 level which will be even more resistive.
NATGAS Video 06.06.19
Remember, natural gas markets are highly cyclical, and it makes sense that as we are heading into the warmest time of year in the northern hemisphere, the market is going to struggle to hang onto gains. On the other hand, once we get closer to the month of November, then we start to see strength and natural gas as demand will inexorably pick up.
Looking at the chart, I suspect that rallies are to be faded, and I would sell exhaustive candles in order to take this market down towards the $2.25 level, possibly even the $2 level after that. Quite frankly, I have no interest in buying this market and if we were to explode to the upside, I would probably sit on the sidelines and just wait for signs of failure to take advantage of. Natural gas is overly abundant, and quite frankly at this point the drillers are filling those storage tanks yet again, so supply won’t be an issue anytime soon. This is probably one of the easiest markets to trade, you simply sell if it gets overextended. As far as buying is concerned, you’ve got a few months before you need to worry about that.
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