Natural Gas Price Forecast – Natural gas markets grind sideways again

Natural gas markets rallied and then lost momentum during the trading session on Wednesday as we continue to bounce around in a range. As we await the inventory figures, it could give the market a chance to rest after bouncing from the lows of the overall range. As you can see on the chart, I have the range drawn as $2.60 on the bottom, and $2.90 on the top. They are both about $0.10 wide, so because of this I think it’s going to be very difficult to break down or a break above this range. In fact, I fully anticipate that this range is probably where we are going to be trading for the foreseeable future, giving us an opportunity to place huge trades at low risk to reward ratio’s.

NATGAS Video 11.04.19

However, we are currently not at one of those levels, so it’s difficult to imagine a scenario where we would put money to work in the short term. If we reach down towards the $2.60 level, then I could be convinced to be a buyer, but overall I think what we’re looking at is a scenario where it’s probably easier to short this market as it is much longer-term bearish attitude that drives the market than any type of hope. As we are in the middle this range though, there’s probably not a lot to do as we simply wait for the opportunities to present themselves.

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