Natural Gas Price Forecast – Natural gas markets do little on Tuesday

Natural gas markets have done very little during the Tuesday session, as we continue to bounce around in a larger consolidation area. Presently, I look at the $2.90 level as the beginning of resistance all the way to the $3.00 level. To the downside, I believe that there is a significant amount of support starting at the $2.60 level, extending down to the $2.50 level which is a major support level on longer-term charts.

NATGAS Video 27.03.19

When you look at the seasonality of this market, we are certainly exiting the most bullish time of year, so I think what we are looking at here is a market that you can trade back and forth, once it gets too far to one side or the other. In fact, natural gas is one of the best markets to arrange trade, but you must be patient enough to wait for a good opportunity to trade. Ultimately it’s likely that the markets will stay in this area, as the fundamental drivers of this market simply are changing. There is an overabundance of natural gas ready to be extracted out of the ground in both the United States and Canada, as well as many other places around the world.

In that backdrop, it’s difficult for natural gas to hang onto gains for any significant amount of time. However, there is a certain production cost in natural gas that keeps it somewhat afloat. It’s a very cheap market, and probably will continue to be so for the foreseeable future as the United States has more than 300 years; worth of energy waiting to be extracted.

Please let us know what you think in the comments below