Natural Gas Price Forecast – Natural gas markets continue to try and bounce

Natural gas markets rallied a bit during the trading session on Thursday, breaking towards the $2.15 level yet again, an area that is resistance as we have seen over the last couple of days. All things being equal, I think there is still plenty of resistance above there as well.
Christopher Lewis
Natural gas daily chart, August 09, 2019

Natural gas markets have rallied a bit during the trading session on Thursday, reaching towards the $2.15 level which of course is an area that should continue to cause resistance. However, there’s even more resistance at the $2.20 level and of course the 50 day EMA above there which is closer to the $2.30 level. Ultimately, we are in a downtrend and we do need to see rallies at this point as opportunities to start selling yet again. Ultimately, I do think that natural gas will turn around but we aren’t anywhere near that right now, because we are still in a relatively warm temperatures as far as the September contract is concerned.

NATGAS Video 08.08.19

Because of this, I’m looking for selling opportunities only. I also recognize that the $2.00 level underneath is massive support and of course a major target, so with that I think it’s only a matter of time before we test that level. I don’t know that we break down below there, and I certainly think that there will be a lot of people looking to try to take a flyer on this market in that region. At the very least I would expect a lot of profit taking, so that of course can come into play as well. All things being equal I think that the market is looking for opportunities to try to break down through that level, but don’t be surprised if we can’t. Either way, it’s hard to imagine a scenario where we don’t at least try.

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