Natural Gas Price Forecast – natural gas markets fall hard on Friday

The natural gas markets have rolled over significantly during the trading session on Friday, breaking down below the $2.93 level as I record this. I think that the market is ready to go lower though, and without a doubt will have an interest in trying to reach the $2.90 level underneath. Rallies at this point should continue to be selling opportunities, as we have a significant amount of resistance above, not only based upon the large, round, psychologically significant figure of $3.00, but also just from the overall attitude of the markets lately.

At this point, I believe that the longer-term outlook for natural gas is starting to take over the market again, as short-term traders had pushed the market higher based upon higher temperatures in the northeastern United States. Remember, this market tends to look at the weather patterns for the following week more than anything else. Because of this, it lends itself to be a short-term traders type of market. However, longer term we certainly have a massive amount of supply at the three dollars level, because a lot of producers are still trying to burn through oversupply from previous drilling at that level which is much more profitable than the average price that they have had over the last couple of years to deal with. I believe that the $2.85 level underneath will be supportive as well, and by extension a target if we continue the bearish pressure.

NATGAS Video 25.06.18