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

Natural gas markets have initially tried to rally during the trading session on Tuesday but gave back quite a bit of the gains. This is a continuation of the negativity that we have seen for some time, so it makes sense that this downtrend has kicked back into gear. We currently find ourselves just above the $2.00 level, so it would not surprise me at all to see this market come into play and push towards that vital round figure. That being said, I also expect that the $2.00 level should offer a significant amount of support. If we reach that level, I would expect a bounce, a lease for the short term.

NATGAS Video 31.07.19

Ultimately, if we were to break down below the $2.00 level, that would be an extraordinarily negative sign. At that point, it would show a massive “flush lower” in the energy market, showing signs of extraordinarily negative pressure. With that being the case, I suspect it’s only a matter of time before we could see a massive drop, followed by a massive “dead cat bounce.” I don’t necessarily expect that to be the case but having said that it’s important to at least keep the alternate scenario in the back of our mind.

To the upside, I think that the $2.20 level is massive resistance, that extends above there quite drastically. Ultimately, the market should offer selling opportunities every time we rally, so signs of exhaustion should be a nice opportunity to take advantage of short-term rallies that are out of line with the overall bearishness of the natural gas markets.