Natural Gas Price Forecast – Natural gas markets continue to show weakness

Natural gas markets gapped lower to kick off the trading session on Friday, turned around to rally towards the $2.20 level again, and then broke down yet again. This is a market that can’t get out of its own way so I’m not interested in trying to fight this trend, and I do believe that we probably go down towards the $2.00 level next. Short-term traders will continue to look at this as an opportunity to sell on signs of exhaustion.

NATGAS Video 05.08.19

The $2.00 level underneath is of course a large, round, psychologically significant figure, so I would anticipate some type of massive bounce from there. That bounce should be a selling opportunity though, so at this point I think that the prudent sellers will stick to short-term charts and pay attention to the $2.20 level as it has proven itself to be resistive already. Above there, we have the 50 day EMA which of course is going to be massive resistance. The 50 day EMA has been massive resistance more than once and continues to hold itself.

If we did break above the $2.50 level it would be an extraordinarily bullish sign, but I don’t see that happening anytime soon. That being the case, we are a couple of months away from a change in attitude, as colder months will bring in bullish trading. The September contract isn’t particularly strong most of the time, so the law of averages also favor selling at this point. We continue the downtrend.

Please let us know what you think in the comments below