Natural Gas Price Forecast – Natural gas markets recovered slightly for Wednesday session

Natural gas markets initially fell during trading on Wednesday but turned around to show signs of life as we reached above the $2.80 level. This is a market that has been in a major downtrend for some time, but recently we have seen an attempt to recover. However, I believe that the $2.90 level is the beginning of major resistance all the way to the $3.00 level, so I’m looking for signs of exhaustion to start selling. We have a gap from the Monday candle, and I think that could be where the sellers start to step in.

NATGAS Video 14.03.19

Beyond that, we have the 50 day moving average sitting just above trading, and it looks very likely that we are going to continue to see sellers there as well. I have no interest in buying this market, quite frankly the demand for natural gas will never take out the supply, at least not for a longer-term move. The alternate scenario of course is that if we can break down below the couple of hammers from the last two days, which is a very negative sign. At that point, the market goes down to the $2.60 level, possibly even the $2.50 level underneath there. It’s not that I think we are going to break down to a fresh, new lows, it’s more like we are going to revisit that area as the $2.50 level has been massive floor for longer-term charts, and it’s likely to continue to be so.

Please let us know what you think in the comments below