Natural Gas Price Forecast – natural gas markets continue to look heavy

The natural gas markets fell during trading on Thursday, as we continue to bounce around a major wedge. The natural gas markets are probably in the latter stages of the bullish time of year, as colder temperatures punish the northeastern part of the United States. However, we will soon be trading Spring contracts.
Christopher Lewis
Natural gas daily chart, December 07, 2018

Natural gas markets fell during trading on Thursday, testing the bottom of the wedge that we have been in. As I have been telling you, I think we have already topped out for the year, as the $5.00 level is simply far too much. Likely that we will break down eventually, perhaps reaching to the $4.00 level. If you break down below that level, then you see this market go much lower. I think that short-term rallies are still opportunities to sell at a market that is getting ahead of itself. I believe that eventually we will break down below the $4.00 level, and then go looking towards the gaps below. The $3.75 level is a target, and then the $3.33 level.

NATGAS Video 07.12.18

I believe that natural gas is getting far ahead of itself, and I believe that the we are looking at a scenario where suppliers will eventually pound the market with the massive amount of excess, because quite frankly they haven’t seen prices like this in quite some time. I believe that we will have an excellent shorting opportunity rather soon, so be patient, but certainly I would be aggressive on exhaustive candles on short-term rallies, at least until we get the break down that I’m looking for. Once we get that, then we begin to look at longer-term trades in my estimation. I have absolutely no interest in buying natural gas at this point.

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