Natural Gas Price Forecast – Natural gas markets continue to grind sidewaysThe natural gas markets went back and forth during the trading session on Friday yet again, as the entire week has been rather noisy and difficult.
Natural gas markets have got a bit of a lift lately due to a tropical storm hitting the Gulf of Mexico, an area that is rife with not only natural gas but crude oil. That area offers a lot of refining and will interrupt production. That being the case, the market could continue to get a bit of a boost over the next several sessions but eventually the fundamentals will catch up to this market. The warmer temperatures expected in the month of August also offer a little bit of a boost, but ultimately this is a market that is over supplied to say the least. If that’s going to be the case, then I think we are eventually going to see sellers come back into this market, perhaps near the $2.60 level.
NATGAS Video 15.07.19
There should be plenty of exhaustion in that area, so at this point it’s likely that the market will give us a better opportunity if you are patient enough to wait for it. A break above the $2.60 level would be a strong sign, but ultimately I think that the market will roll over and then reached towards the $2.30 level. I’m looking for signs of exhaustion in the form of a shooting star or the like. Looking at this chart, I believe that the downtrend will continue, and of course the cyclical aspect of natural gas continues to favor the downside in the short term anyway. The market is offering a nice opportunity in the relative near term, but in the short term I would be a bit cautious about trying to buy this pop.
Please let us know what you think in the comments below