Natural Gas Price Forecast – Natural gas markets pulled back slightly to kick off the week

Natural gas markets have gone back and forth during trading on Monday as we continue to see a lot of selling pressure every time we try to rally. The $2.60 level continues offer resistance, but beyond that there are plenty of other reasons to think that above here we should also see selling pressure. With that in mind it’s very likely that what we will see is a “sell on the rally” type of mentality. The 50 day EMA is just above at the $2.75 level and then of course will offer a significant amount of resistance as well.

NATGAS Video 30.04.19

To the downside, I see the $2.50 level is massive support. Don’t get me wrong, I think this market can rally and in fact will eventually. However, we are in the wrong time of year for natural gas to continue any type of move to the upside so although you can make some money going long natural gas on these pullbacks, the reality is that it is much easier to short this market on rallies than anything else. After all, this is the wrong time of year for demand, and although the supply is a bit thin at the moment, it won’t take long at all for the Americans to refill storage tanks. Beyond that, the Canadians also will be in full drilling mode as well. Looking forward, the market probably won’t be ready to rally significantly until late fall.

Please let us know what you think in the comments below