Natural Gas Price Forecast – Natural Gas Markets Continue To Look Sluggish

Natural gas markets gapped a little bit higher during the trading session on Monday, reached higher, and then pulled back a bit. Bonnie showing bullish pressure, this simply shows that the market can’t go down forever. At this point, I think that the $1.80 level above should be resistive, as it was previous support. At this point I look for signs of exhaustion in order to start selling again, as we continue to reach towards the $1.60 level which was a longer-term bottom.

NATGAS Video 03.03.20

As we have seen so much in the way of destruction, we will get the occasional bounce. Having said all of that though, the markets obviously have to worry about warmer temperatures coming, as we exit the winter season in the United States and Europe. That is not going to help the situation for this market, considering that there is so much in the way of oversupply. It’s not until we get the bankruptcies in the United States that we will see a longer-term move to the upside as there are far too many drillers and producers out there throwing natural gas into the market.

To the upside, I believe that the $2.00 level above is significant resistance, and the 50 day EMA is trading right in that same area as well. Signs of exhaustion will be jumped upon, so therefore I don’t like the idea of buying at all and I think if we do bounce from here it’s likely that we will get a nice opportunity to short this market given enough time, if you are patient enough. I don’t have a scenario in which I am a buyer.