Natural Gas Price Forecast – natural gas markets drift slightly lower on Tuesday

Natural gas markets drifted a little bit lower during the trading session on Tuesday, losing a little over half a percent by the time I recorded this video. I believe that the market will continue to be negative longer term, but we could get the occasional bounce as we have so much in the way of support underneath. However, if we were to break down below the $2.88 level, the market could drift towards the $2.85 level next. I think that the market will eventually go much lower, perhaps down to the $2.65 level which has been important more than once.

Rallies at this point will continue to struggle to break above the $3.00 level, but quite frankly I think that we probably won’t see that level again anytime soon. I prefer to wait for bounces that show signs of exhaustion to start shorting again, because that has worked out so well over the longer-term. I believe that the market will continue to fixate on short-term trading more than anything else, so keep that in mind as well.

At this point, I don’t feel comfortable hanging onto a trade for very long, as this market will quite often focus on the weather report of the following week, which of course is very difficult to base your trading outlook upon, at least for anything more than a couple of days at best. However, the longer-term oversupply of natural gas will continue to be a problem.

NATGAS Video 27.06.18