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Natural Gas Price Forecast – natural gas markets flat on Friday

Natural gas markets were relatively flat on Friday, as we test the $2.78 level. It looks as if the market is ready to roll over a bit as we approached the 200 hour moving average. Beyond that, there seems to be a lot of supply in the neighborhood, and of course we are in a recent downturn.
Christopher Lewis
Natural gas daily chart, July 23, 2018

Natural gas markets were a bit flat during the day on Friday, showing signs of exhaustion after an explosive move late on Thursday. I think that natural gas markets will continue to struggle overall with oversupply and of course the strengthening US dollar longer-term. I believe that the $2.70 level was a significant area of demand so a bounce made sense from there. However, I believe that we are going to go back towards that area and test it for support. If we can break down below that level, the market is likely to go down to the $2.65 level next.

I still believe that rallies are to be sold, and that buying this market is all but impossible. Even if we rally from here, I suspect that the $2.80 level and the $2.85 level both will be rather resistive. I’m simply looking for signs of exhaustion to start selling, but I do recognize we could bounce further because we have sold off are so many days in a row. Overall though, keep in mind that this market tends to function with a short-term attitude, so inventory numbers and weather reports out of the United States will have a massive influence on where we go next. I’ll being equal though, I think that there is still plenty of bearishness in this market to take advantage of if you are patient enough to wait for it.

NATGAS Video 23.07.18

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