Natural Gas Price Forecast – Natural gas markets fall

Natural gas markets fell during the trading session on Thursday as we continue to see a lot of resistance to buying pressure. Keep in mind that this market is oversold though, so it’s very likely we will see a lot of choppy and back and forth. The market participants are perhaps looking for some type of value here, but I still believe that it’s easier to short this market after rallies that show signs of exhaustion. After all, this is a market that is in a huge downtrend and of course we have a lot of oversupply coming back to the market again. Yes, we did exhaust quite a bit of supply over the last few months but it’s only a matter time before drillers fill those tanks right back up.

NATGAS Video 10.05.19

Looking at the chart, I suspect that the next major resistance barrier is the 50 day EMA which is just below the $2.70 level, and then the $2.75 level after that. If you are patient enough, you should be able to get an opportunity to start selling again in a market that has been so decidedly bearish. I believe that this is probably one of the most seasonally sensitive markets, meaning that we probably won’t get a sustainable move to the upside until closer to the month of November. It doesn’t mean you can’t make money to the upside, it just means that it’s easier to sell rallies going forward.

Please let us know what you think in the comments below