Natural Gas Price Forecast – Natural Gas Markets Hover Over Support

Natural gas markets have gone back and forth during the trading session after gapping higher on Thursday. At this point, the $1.60 level of course is an area that has been important more than once, and it looks as if it is going to offer a lot of support. At this point, I think that if the market does break down below the lows of the Wednesday session, it opens up the idea of a $1.50 level. That being said, this is more than likely going to be a scenario where it’s easier to fade the rallies than it is to come in short at the extreme lows.

NATGAS Video 20.03.20

The market of course is very negative due to the fact that there is a massive amount of oversupply out there, and that isn’t going to change anytime soon. The market looks at the natural gas markets through the prism of an entire industry that is highly levered to a lot of bad debt. Fracking is going to continue to suffer at the hands of low pricing, so given enough time it is going to make for some bankruptcies that could drive up the amount of supply.

To the upside, the $1.80 level offers resistance, and most certainly the $2.00 level offers plenty of resistance as well. At this point, I’m simply looking for an opportunity to start shorting on signs of exhaustion. While we could sell on a break down below the lows of the trading session on Wednesday, I still don’t like that trade and will be waiting for opportunities to get short when the market gets the inevitable bounce.