Natural Gas Price Forecast – Natural gas markets continue to look bearish

The natural gas markets initially tried to rally during the trading session on Tuesday but found the $2.30 level being massive resistance. At this point, the market looks as if we are ready to roll over yet again as we have continued to break down below the $2.25 level. Ultimately, the market looks as if it is going to try to go down to the bottom again, as the downtrend dictates. Quite frankly, there is more than enough supply out there to keep this market down and therefore rallies continue to offer nice selling opportunities.

NATGAS Video 03.07.19

To the upside, the $2.30 level offers plenty of resistance but I think it also extends to the $2.40 level. Anytime the market rallies at this point and digs into that area, we should see plenty of selling as there’s simply no reason for this market to rally longer-term. Typically, the market tends to be negative this time a year, but later on in fall we could see buyers come back in.

To the upside, if we did break above the 50 day EMA that could change some stuff but longer-term there is massive resistance at several different points between here and $2.75, so it’s going to be difficult to get bullish between now and then, at least not until we get more demand coming out of the northern hemisphere to heat homes, or perhaps some type of global growth growing in order to increase demand. Right now, neither of those look very likely so I think rallies are simply opportunities.

Please let us know what you think in the comments below