Natural Gas Price Forecast – Natural gas markets drift lower

Natural gas markets drifted lower during the trading session on Wednesday, reaching towards the $2.50 level yet again. This is an area that could be support though, so it’s likely that we could get a short-term bounce. If we break down to a fresh, new low though, that could send this market tumbling yet again. Keep in mind that although storage numbers are a bit low right now, the reality is that the Americans and the Canadians can fill storage tanks rather quickly. We are in the low usage part of the year, so that should only be a matter of time. With that, it’s hard to imagine a scenario where bullish behavior lasts for any significant length.

NATGAS Video 07.05.19

Until late fall, it’s very likely that the market will continue to sell rallies, as there is so much selling pressure above. The 50 day EMA is near the $2.70 level, so any signs of exhaustion in that general vicinity should be a selling opportunity. Alternately, if we do break down below the bottom, then we could go as low as $2.25 rather quickly. Down in that area, we have another support barrier based upon previous structural trading years ago, and of course the psychological importance of the $0.25 intervals.

If we do break above the 50 day EMA, then we could go as high as $2.90 and still be in the same general attitude that we have been in for some time. Simply put, I’m looking for signs of exhaustion to continue to sell this market but we are a bit low to start going here.

Please let us know what you think in the comments below