Natural Gas Price Forecast – Natural gas markets continue to grind sideways

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