Natural Gas Price Forecast – Natural gas markets continue to grind

Natural gas markets rallied a bit during the trading session again on Tuesday, but only slightly so. This is a market that is oversupplied and most certainly bearish, so a bit of a bounce would have been expected from the $2.50 level, an area that is supported on longer-term charts. At this point though, it looks very likely that we are going to see resistance above, especially near the $3.00 level which coincides nicely with the 50 day EMA.

NATGAS Video 27.02.19

Beyond all of that, the gap at the $3.00 has me looking to sell this market again, so at this point it’s very difficult to think of an idea as to why I would buy natural gas. Yes, the colder temperatures in the United States will go away but overall it’s very likely that we will see another spike in pricing, but that spike should be an opportunity to start selling again as we certainly have an overabundance of natural gas out there, and therefore it’s very likely that we will see sellers come back at the first opportunity to pick up a little bit of momentum to the downside. I am patiently watching the $3.00 level and waiting for my opportunity to take advantage of which should be a relatively obvious trade. If we do break above the $3.00 level, then I think the $3.15 level will probably offer your next opportunity to short this market as it coincides with the 200 day EMA. Regardless, I have no interest in buying natural gas, as there is far too much in the way of supply out there.

Please let us know what you think in the comments below