Natural Gas Price Forecast – Natural Gas Markets Fall to Test the Low

Natural gas markets initially rally during the trading session on Wednesday but rolled over yet again as there are major concerns about the demand for energy in general. This of course is going to continue to be a major problem, so therefore I do believe it’s only a matter of time before natural gas breaks down. If we do break down to make a fresh, new low, it’s very likely that the market then goes down to the $1.50 level. That is a large, round, psychologically significant figure, and therefore will attract a certain amount of attention as well as bring in a lot of headlines noise.

NATGAS Video 02.04.20

To the upside, I believe that there are plenty of opportunities to short this market, especially near the $1.80 level, and most certainly at the $2.00 level. I have no interest in trying to fight the overall trend, so even if you told me that this market was most certainly going to bounce tomorrow, I would not be a buyer of it because the trend is so set in stone and negative. It’s not until we get bankruptcies in the United States that we will be able to see a sustained rally because there is simply far too much supply out there for the lackluster demand to drive through. Furthermore, the coronavirus has made that demand even weaker and then of course we have warmer temperatures coming. This is an absolutely miserable time of year to be bullish on natural gas.