Natural Gas Price Forecast – Natural Gas Markets Pull Back To Show Weakness Again

Natural gas markets have fallen a bit during the trading session on Wednesday, as we continue to see a lot of weakness. The $1.90 level continues to be a bit of a magnet for price, and therefore it looks likely that we should continue to reach towards the $1.80 level where we see a lot of support, just as the $2.00 level has offered plenty of resistance. At this point, it’s obvious that the natural gas markets are completely shot, and it’s likely that the rallies will continue to be nice selling opportunities. The 50 day EMA is currently at the $2.20 level, an area that I believe will be the “ceiling” of the market unless something changes fundamentally. Granted, there is only a matter of time before we get some type of winter spike due to cold temperatures, but it’s difficult to imagine that the market can hang on to those gains. Sibley put, I’m looking for some type of spike to start fading near the $2.00 level, and then eventually the $2.20 level. It’s not until we see massive damage to the supply that this market can rally for any significant amount of time.

NATGAS Video 30.01.20

If we were to break down below the $1.80 level, the market should then go down to the $1.60 level next. All things being equal, this is a market that should only be sold, and therefore it’s not until we get serious destruction of supply that you can take anything serious. The only way that’s going to happen will be the bankruptcy wave that is certainly coming to the industry. That’s a story for next year though.

Please let us know what you think in the comments below