Natural Gas Price Forecast – natural gas markets fall on Tuesday

Natural gas markets drifted a bit lower during the trading session on Tuesday as we continue to try to digest all of these massive gains that we have had as of late. The $3.15 level underneath is pretty supportive, but I also think that the $3.20 level could offer a bit of support. If we bounce from here, it’s likely that the market could go back to the $3.30 level, and I think we more than likely will. However, we are extremely elevated at this point, and I would be the first to point out that we had printed a couple of shooting stars on the daily chart recently. It’s because of this that I think we continue to draw conclusions that we need to find buyers underneath.

I think short-term sellers will continue to punish this market, but eventually there should be buyers underneath. I believe that the $3.00 level underneath will be massive support based upon its psychological significance and of course its structural significance as well. I do believe that this time of year tends to attract more buying than selling, because quite frankly it’s getting colder in the United States and we are trading the November contract in the futures pits, which of course drives up the value as well, mainly because the demand should continue to go higher. However, I think that we will eventually find reasons to go higher but I also recognize that the $3.35 level above has been massive resistance. Ultimately, this market will be bullish for a while, but sometime early next year we will start to see sellers again run this market longer-term.

NATGAS Video 17.10.18