Natural Gas Price Forecast – natural gas markets extraordinarily volatile on Wednesday

Natural gas markets initially tried to rally during the day on Wednesday but gave back the gains near the $2.86 level. I think this pullback should represent a buying opportunity though, as we have seen the market turned around on the daily chart. The market has been consolidating between $2.70 on the bottom and $3.00 on the top. Because of this, I think that the market will continue to stay within the longer-term range, and as we have recently bounced from the $2.75, the beginning of the support, it makes sense that we may be trying to turn around for the season. However, that doesn’t mean that it’s good to be an easy trade, and most certainly it doesn’t mean that you can simply buy-and-hold. Natural gas markets are incredibly erratic and do tend to run counter to crude oil markets.

Looking at the chart, I think that the $2.80 level should be supportive, and that on signs of a bounce or supportive candle such as a hammer, it could be a nice buying opportunity. Ultimately, I think that the market could go to the $2.95 level which is the beginning of the resistance above, but obviously you’re going to have to pick your spots. I like buying short-term pullbacks because if you make a fresh, new low, then you have a clear sign to get out. I do believe that eventually the buyers are going to push higher, so I have more of an upside bias now. I continue to focus on short-term charts with those larger levels in mind though.

NATGAS Video 13.09.18