Natural Gas Price Forecast – Natural Gas markets rally to kick off weekNatural gas markets rallied a bit during the trading session on Monday, reaching towards the $2.25 level. However, I think that we may have a little further to go to the upside before you run into major resistance.
Natural gas markets rallied a bit during the trading session on Monday, reaching towards the $2.25 level. At this point, it’s very likely that we will continue to see the $2.30 level be more important as it was previous support. That being the case I like the idea of fading natural gas near that level, with a stop loss just above the $2.40 level. The fact that we have recently broke below the $2.20 level puts in a nice 1:1.5 risk to reward ratio, as I would be aiming for the lows again, near the $2.15 handle.
NATGAS Video 25.06.19
If we were to break above the $2.50 level, then it’s very likely that the $2.50 level would be targeted again as it is the 50 day EMA. Beyond that, the $2.60 level is massive resistance as well, so it’s kind of the same thing that we have just above the $2.30 level. Remember, the natural gas markets are extraordinarily bearish and oversupplied anyway, not to mention the fact that the market is in the wrong time of year to be rallying significantly anyway. Demand will pick up later in the year such as November. That being the case, I do think that natural gas will eventually be a significant opportunity for buyers, but we are several months away from that happening. Until then, I am a seller of rallies as they occur, recognizing that natural gas is literally oversupplied. In fact, I don’t have much out there in my sights that suggests buying.
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