Natural Gas Price Forecast – Natural gas markets drift lowerNatural gas markets tried to rally at the open on Wednesday, but then turned around to form a slightly negative candle stick. The $2.40 level looks as if it is going to offer resistance in the short term.
Natural gas market participants tried to rally during the open on Wednesday, as the $2.40 level continues offer short-term resistance. At this point in time it’s obvious that the market is in a bearish attitude, so at this point I think that it’s likely that the $2.50 level will continue to be an area that the market will pay a lot of attention to as it has in the past. After all, it was significant support so now it is potential resistance. If we can break above the $2.40 level I will simply sit on the sidelines and wait for an exhaustive looking candle near the $2.50 level that I can take advantage of. I think that the resistance extends all the way to the $2.60 level as well. At that area, we see the 50 day EMA.
NATGAS Video 13.06.19
Natural gas markets are typically bearish this time a year, so there’s no reason to think that anything is going to change in the short term. Ultimately, this is a market that that will take a certain amount of patience, but at this point it’s very likely that signs of failure will be jumped on. I have no interest whatsoever in trying to buy this market, as it is so negative. However, there does come a time later this year where we will be buyers of natural gas, because of the cyclicality of the market. We are several months away from that though, and therefore simple selling the rallies continues to be the best way to approach.
Please let us know what you think in the comments below