Natural Gas Price Forecast – natural gas markets rally slightly on Thursday

Natural gas markets have shown signs of turning around over the last several days, and at this point for me it’s obvious that the market is trying to turn around in general. The market has been consolidating between the $2.70 level and the bottom, and the $3.00 level above. Overall, I think that the market will stay within that range, but we are starting to get close to colder months in the United States, and that should drive demand for natural gas a bit higher. The seasonality is probably starting to come into play now, as the futures markets are trading the October contract. Once the contract rolls over, will be talking about December, which obviously should be relatively bullish.

Natural gas markets continue to be stuck in this range, because quite frankly there is so much in the way of supply out there that it’s difficult to imagine a scenario where natural gas suddenly becomes very expensive. However, we can still play the range, and of course trade what the market gives us. I think at this point short-term pullbacks should be buying opportunities at this point, and it’s likely that we will continue to see interest at levels such as the $2.82 area and the $2.80 level below. If we did break down from here, I think massive support will start to show up at $2.75, extending down to the $2.70 level. That would be an excellent opportunity to start picking up natural gas “on the cheap.” Because of this, I’m simply looking for buying opportunities on short-term charts now.

NATGAS Video 14.09.18