Natural Gas Price Forecast – natural gas markets hover

Natural gas markets have kept again during the trading session on Tuesday, showing signs of exhaustion and confusion. I think that the market will eventually break down though, because we cannot levitate at these massive levels without a sense of bullish pressure. I think at this point, we have gotten ahead of ourselves and we will go looking towards the $4.00 level underneath. That’s not to say that it’s going to be easy and is not to say that we can have short-term rallies along the way. However, I continue to prefer to fade the rally’s that appear, because quite frankly the market has gotten way ahead of itself.

NATGAS Video 21.11.18

I believe that the $5.00 level above is major resistance, and I think it could possibly be the high price of the winter, because quite frankly we got there too quickly. There is a lot of cold weather coming to the northeastern part of the United States, but at the end of the day the United States has plenty of natural gas just waiting to be put to market. Suppliers can make a lot of money at these levels, so they will of course be willing to sell deliverable contracts in this general vicinity. Once we break down below the $4.00 level, then I think the downside would accelerate. I would not be a buyer at these elevated levels, although like I said previously, we certainly could get the occasional rally.