Natural Gas Price Forecast – natural gas markets continue to find sellers above

Natural gas markets ran into a bit of resistance during the trading session on Tuesday, as we hit the $2.25 level which of course is a psychologically important figure. Beyond that we also have the 50 day EMA in that general vicinity, and of course a downtrend line that cuts right through that range. That being said, we are trying to form some type of basing pattern in the natural gas markets, which makes sense considering we are trading the October contract. While this isn’t necessarily where you start to see natural gas explode to the upside for the winter months, it is the beginning of the end of selling pressure for the year, so to speak.

NATGAS Video 28.08.19

I anticipate that this market is probably going to continue to grind down towards the $2.00 level, as the market will more than likely want to test that area again. There must be a ton of stop loss orders there, and if they can kick through them, it’s going to cause a huge flush lower. That being said, I think it’s going to take a lot of effort to make that happen so it’s very likely what we will do is simply grind towards that area slowly. Alternately, if we get a rather impulsive candle stick to the upside, breaking above the August 1 highs, then we may start to look towards the $2.50 level after that. I think it’s a little early to expect that rebound, but it’s something that we need to pay attention to.

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