Natural Gas Price Forecast – natural gas markets rally significantly during Wednesday trading

Natural Gas markets were very noisy during the trading session on Wednesday, shooting towards the $2.95 level before showing signs of resistance. At this point, the market looks as if the $2.96 level should continue to be important as it has in the past, and I think that the market will continue to look at it as such. I believe that if we roll over and break through the $2.94 level, the market could go lower, perhaps reaching towards the $2.90 level. If we continue to go higher and above the $2.96 level, then I think that the market probably goes looking towards the $3.00 level.

The market continues to make a lot of noise, and it tends to base trading upon the next couple of weeks of whether, sometimes as close as the next few days in the northeastern part of the United States. Because of this, the market tends to be very difficult, but you need to keep an eye on those weather reports to put money to work. I think that the longer-term attitude of the market is negative as we are oversupplied, but in the short term we will certainly be looking at more use based upon expectations and the larger than anticipated draw from inventory.

Overall, the market is still basically range bound, with the $3.00 level above beginning a significant amount of resistance that extends to the $3.10 level after that. On signs of exhaustion, I will not hesitate to sell even if we do rally from here. I suspect that it’s only a matter of time before the sellers get involved again.

NATGAS Video 21.06.18