Natural Gas Price Forecast – Natural gas markets gap lower

Natural gas markets gapped lower to kick off the week on Monday, breaking below the $2.85 level initially. Beyond that, we then broke down below the $2.80 level, which of course is even more bearish. At this point in time, it is very likely that the market will continue to see sellers come in and punish this market, because it has been a bit too bullish as of late. We are in the wrong time of year to see a resurgence of price and natural gas, as the demand will naturally start to drop off as temperatures climb in the United States.

NATGAS Video 12.03.19

Beyond that, we are starting to see concerns about global demand for energy in general, as the picture for global growth it really is starting to turn over. If that’s going to be the case, then obviously factories will need as much natural gas to power industry, and therefore it’s likely that we will continue to see a lot of bearish pressure in this market. With that being the case, I continue to sell rallies as they appear, and believe that we will go towards the $2.65 level underneath, as it has been rather stringent support extending down to the $2.50 level. This is a market that is extraordinarily bearish, so therefore there’s no reason to try to get in front of the sellers. Short-term rallies being sold continues to be the main theme here, and if you are nimble enough you can make quite a bit of money shorting intraday charts. The $2.90 level begins a significant resistance all the way to at least the $3.00 level above.

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