Natural Gas Price Forecast – Natural gas markets rally to kick off week

Natural gas markets have been in a range for quite some time, with the $2.60 level underneath being the beginning of massive support extending down to the $2.50 level. At this point, I think that the market has gotten oversold so it makes sense that we would continue to find a bit of value hunting in this area. However, this is a market that has a downward proclivity based upon the oversupply in the natural gas market, so therefore I will not hesitate to sell exhaustive candles that are closer to the $2.90 level.

NATGAS Video 09.04.19

In the short term, this is a market that I think could go higher but obviously in a downtrend and in a weak market you prefer going with that overall sentiment. The 50 day EMA, pictured in red, could offer resistance as well, so it comes down to whether or not you can babysit the trade. If you can sit on the trade and watch it on short-term charts, you may get an opportunity to buy natural gas. Otherwise, if you are more of a swing trader you are starting to look for exhaustion above that you can start selling and aiming towards the $2.60 level again. In general, I’m a seller but I do recognize that short-term charts will give you the opportunity to pick up value if you are quick about it. I don’t like the idea of putting a lot of money to work to the upside, so a short-term trade might be best served with a small position, and a larger position on a short trade that offers itself later.

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