Natural Gas Price Forecast – natural gas markets rally significantly on Friday

The natural gas markets have rallied significantly during the day on Friday, breaking above the $2.80 level. This is a very bullish sign, but more importantly what I’m looking at is the weekly chart and it looks as if we are ready to continue to try to go higher, perhaps reaching towards the $3.00 level over the longer-term. It doesn’t mean that it’s going be an easy trade to take, but what it does mean is that we could see a short-term “buy on the dips” type of attitude. This is a market that that will continue to be very volatile, but that’s nothing new to natural gas as it can be thin at times.

Natural gas markets look as if they have a significant amount of support underneath at the $2.78 level, and then perhaps the $2.76 level as well. I think it’s only a matter of time before buyers command on these dips, at least in the short term. This is a market that should continue to be noisy yet gives us an opportunity to pick up a little bits and pieces along the way. Longer-term, I think that there will be massive selling at the $3.00 level, so I will simply reverse the attitude that I have of this market once we get to that level. Oversupply continues to be an issue with natural gas, but at this point I think we are simply far too oversold to continue the bearish pressure.

NATGAS Video 30.07.18