Natural Gas Price Forecast – natural gas markets finds support underneath

Natural gas markets fell during the trading session on Friday but has seen plenty of support at the $2.75 level. Because of this, it looks like we could get that bounce I’ve been talking about, and I do believe that the next couple of sessions could be bullish. That being said, I don’t have any interest in trying to buy this market, rather I would prefer to see a bounce that show signs of exhaustion that I can start selling. After all, the overall supply of the natural gas markets are far too strong for people to expect high prices for the longer-term, so I think ultimately we are looking at a relief rally.

NATGAS Video 04.02.19

That relief rally will run into serious trouble at the $3.00 level, or perhaps the 20 day EMA which is pictured in green on the chart. Truthfully, I would rather short this market at higher levels, perhaps as high as $3.25 level. Nonetheless, we may have to take what we can get. Either way, I do like fading rallies and think that will continue to be the way forward as we have left the seasonal bullish pressure.

A break down below the $2.75 level is of course very negative and could have the market looking towards the $2.50 level given enough time, which should be even more supportive based upon the longer-term charts. At this point, we certainly are negative, but we are at extremely low levels. Give yourself an opportunity to make profit, meaning sell from higher levels.