Natural Gas Price Forecast – Natural Gas Markets Fall

Natural gas markets have initially tried to rally during the trading session on Thursday but gave back the gains in order to show signs of negativity. By doing so, the market is very likely to continue to see a drift lower, perhaps reaching down towards the bottom again. I think at this point any rally that comes should be sold into, and quite frankly I think it is a bit surprising that we could even reach towards the 50 day EMA again. Don’t be wrong, that doesn’t mean that I would have been buying this market, but I also recognize that the market is a mass for a reason, as we are so far oversupplied.

NATGAS Video 06.03.20

The inventory number wasn’t bullish at all during the session, and it suggests that we will continue to see more losses in a market that simply can’t get out of its own way. At this point, I do think that we will revisit the downside and even if we did rally from here it’s likely to offer plenty of selling opportunities, especially near the 50 day EMA. The $2.00 level above is massive resistance as well, so therefore it’s not until we break above that level that I would take any rally remotely seriously. This is a downtrend for a good reason, and quite frankly there is no sign of markets turning around until we get a slew of bankruptcies that are desperately needed in a market that has far too many players producing far too much in the way of the commodity.