Natural Gas Price Forecast – natural gas markets continue to show resistance above

Natural gas markets rallied a bit during the trading session on Wednesday but found enough resistance above at the $2.75 level again. Ultimately, I believe that the market continues to be very noisy but really need to see this market have a bit of a relief rally that we can start selling. I would love to see this market go towards the $3.00 level before selling as it would give me a little bit more real estate to take advantage of. The $2.50 level underneath is massive support, and I think a major bottom in the longer-term charts.

NATGAS Video 14.02.19

With that in mind, and the fact that I think that there is plenty of supply out there that’s going to continue to weigh upon the idea of higher pricing, so I have absolutely no interest in buying this market even though I recognize that we are in very stringent support. Ultimately, I think that the other part of the bearish equation is the fact that we have to worry about global demand as the global economy seems to be slowing a bit. If that’s going to be the case, then obviously there will be much less demand for power such as natural gas.

Looking at this chart, I think that the moving averages converge somewhere near the $3.10 level, which is an area that has been important a couple of times. Quite frankly, I need to see these levels tested before I’m comfortable getting involved. At this point I am simply sitting on my hands. If we break down below the $2.50 level then we are looking at Lowe’s that haven’t been seen for several years.

Please let us know what you think in the comments below