Natural Gas Price Forecast – natural gas markets finds support underneathThe natural gas markets fell a bit during the trading session on Friday, reaching down towards the $2.75 level underneath. However, we have bounced a bit from there and it does look as if we have plenty of support to keep the market afloat.
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.