Natural Gas Price Forecast – natural gas markets pulled back significantly on Friday

Natural gas markets broke down a bit during the trading session on Friday, slicing through the $3.20 level, and then eventually down through the $3.15 level. I think at this point, the market also has support at the $3.10 level, and of course the three dollars level after that. Overall, I think that the market continues to be very volatile, but I think that there are plenty of buyers in this market judging by the fact that we have had an explosive move to the upside. We found a significant amount of pressure at the $3.25 level and fell rather significantly.

Overall, I think that the market has gotten ahead of itself so I think you’d be better off probably waiting for some type of support underneath in order to go long based upon value. If we were to break down below the $3.10 level, I think the market probably drops down to the $3.00 level next. If we break down below the $2.95 level, the market then breaks down to the $2.75 level. Overall, I expect a lot of choppiness, but I think short-term you may be able to short this market but given enough time I think eventually the demand comes back into play. We have clear ranges between $0.10 levels that we could use for support and resistance based upon the recent historical trading. Obviously, we are in a seasonally bullish time of year, so I do prefer buying more than anything else.

NATGAS Video 08.10.18