Natural Gas Price Forecast – natural gas markets continue to hover just above support

Natural gas markets continued to hover just above the $2.70 level during the trading session on Tuesday as we continue to see plenty of bearish pressure. Every time we rally, the southern step back in and push lower. I believe that the $2.70 level underneath will eventually give way to selling pressure.
Christopher Lewis
Natural gas daily chart, July 25, 2018

Natural gas markets have been very negative for some time now, and on the longer-term charts you can see that we are very obviously in the midst of consolidation. I believe that the consolidation will continue to be the longer-term attitude of this market, but I also recognize that there is a major situation involving oversupply. If we can break down through the $2.76 level, then I think the market probably goes down to the even lower support level at the $2.60 level. In the meantime, it is probably best to simply wait for short-term rallies that you can sell at the first signs of exhaustion. Remember, this market tends to be very volatile and very short-term focused. Because of this, you should pay attention to the weather in the United States, as it is the largest market.

Natural gas is so oversupplied that I think the three dollars level will continue to be the absolute “ceiling” of the market going forward, and it’s not until we would break over that level for a couple of weeks that I would be comfortable holding onto a position. In the short term, I think we continue to go back and forth, but I still prefer to simply wait for selling opportunities as there is much more longer-term pressure in that direction. That being said, there will be short-term buying opportunities if you are quick and nimble enough, but quite frankly I prefer to go with the stronger pressure.

NATGAS Video 25.07.18

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