Natural Gas Price Forecast – natural gas markets gap to open the week

Natural gas markets gapped lower to kick off the week, reaching below the $3.75 level. Ultimately, it now looks as if we will probably go looking to fill the gap underneath, which of course has been filled yet. I think it’s probably best to wait for a rally at this point though, because as overbought as we were, were now starting to get oversold far too rapidly. Overall, I think that the four dollars level will offer enough resistance above to keep the market down, and I would also point out that suddenly the 50 day EMA is starting to rollover. That is something worth paying attention to, and I do think that we go lower but I also think that a relief rally is overdue at this point. I would not short down here, because quite frankly you have to ask yourself the following question: “who is left to sell at this point?”

NATGAS Video 18.12.18

As I had been talking about previously, at these elevated levels there are plenty of American fracking companies out there more than willing to dump supply into this market, as they haven’t seen the ability to profit like that for ages. Ultimately, I think that the market will continue to see those companies jump into the market and push every time we rally. We are starting to look at warmer temperatures recently, it of course before you know we will be trading Spring contracts. The seasonality is over.