Natural Gas Price Forecast – Natural gas markets fall hard on MondayNatural gas markets fell rather hard during the trading session on Monday, as we continue to see a lot of negativity. Overall, this is a market that looks likely to struggle, but we are at the very bottom of the longer-term consolidation area.
Natural gas markets have gapped lower to kick off the trading session on Monday and decided to reach towards the $2.60 handle. That is an area that has been important more than once, and the fact that we bounced from that level suggests that it should be in the future. With that being the case, it’s likely that we will see significant buying pressure come back into the marketplace, and at the very least go looking to fill the gap. If we can break the gap, then we will probably go looking towards the $2.70 level.
NATGAS Video 16.04.19
From a longer-term perspective it’s possible that we simply continue the overall consolidation that we had been in for ages, meaning that we will probably see an attempt to go towards the $2.90 level which is the top of the overall range. That being the case, you should probably keep in mind it’s going to take a long time to get there obviously.
Overall, this is a market that is somewhat reliable as far as the range that intends to trade and, so keep that in mind. That doesn’t mean that it’s going to be easy, but the “pain trade” is obviously to the upside. As is typically the case, the hardest trade is generally the correct one to take. However, if we were to break down below the $2.50 level that would be a complete collapse and capitulation of the natural gas markets which would be quite drastic.
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