Natural Gas Price Forecast – natural gas markets get hammered on Tuesday

Natural gas markets fell rather hard during the day on Tuesday, reaching down to the $2.90 level, but at the end of the day I think there is still plenty of bounce left in this market. I don’t know that we reach new highs again, and quite frankly I think that the $3.00 level has scared traders away, but at this point I think we are a bit oversold. This could lead to a short-term bounce the traders take advantage of based upon the psychological and structural importance of the $2.90 level, but ultimately I would also anticipate that there will be exhaustion above that can be sold.

Alternately, we could break down below the $2.90 level, reaching down to the $2.85 level next. I think that there will be a lot of noise in this market regardless, but I do think that the oversold condition will probably lend itself to see a bit of a bounce. Trade war fears have rocked many of the markets around the world, and although it doesn’t have much to do with natural gas specifically, it does tend to have a bit of a “knock on effect” around the commodity space as people start to sell anything that’s been working to raise cash for other positions. Short term expect a bounce but longer-term I am still bearish of natural gas overall and believe that the oversupply of the commodity in places such as Pennsylvania and Ohio will continue to cause issues for pricing.

NATGAS Video 20.06.18