Natural Gas Price Forecast – Natural Gas Markets Fight BackThe natural gas markets broke down significantly during the trading session on Friday but bounced enough to show signs of life yet again. We are in the midst of a support zone, and that should continue to keep this market somewhat afloat.
Natural gas markets initially fell during the trading session on Friday as we are continuing the overall downtrend. However, we have turned around to show signs of life again and it’s very likely that the market is starting to get to be a bit overextended. Ultimately, by forming the candlestick that it has we could see a bit of a bounce, but I would treat that as only a short-term trade. We are at extreme low right now, so that makes quite a bit of sense. The $2.00 level underneath should be a massive “floor” in the market.
NATGAS Video 06.01.20
All of that being said, this was helped by a natural gas storage figure at -58 billion, as opposed to the expected -60 billion. With that in mind, it’s likely that we could see this market return to the $2.20 level, and perhaps even try to overtake it. If it does, then a move to the $2.30 level is possible. That being said, I would be looking to short any rallies that show signs of exhaustion as warmer than anticipated temperatures continue to be a major problem across the lower 48 in the United States. If we were to somehow break down below the $2.00 level, that would be catastrophic for the natural gas markets, because it is such a large, round, psychologically significant figure, breaking down below there would of course cause a chain reaction. It is also a large options barrier so it should be watched. Natural gas has had a horrific winter, and it looks like even though a bounce is somewhat imminent, this won’t change.