Natural Gas Price Forecast – Natural gas markets rocket higher

Natural gas markets rocket higher during the Friday session to test the 50 day EMA. We broke above the $2.40 level which is rather bullish, but quite frankly there are plenty of reasons to think that this market will turn around. The 50 day EMA could be a catalyst, but I will wait until we get some type of exhaustive daily candle stick such as a shooting star to take advantage of. I believe that there is significant resistance all the way to at least the $2.60 level, and even though we are looking at hotter temperatures in August, the reality is that the demand will never catch up with the supply.

NATGAS Video 08.07.19

Being patient should offer an opportunity if you simply give it time. We are in a downtrend, and that has not changed regardless of whatever’s going to happen in August. I believe that we will revisit the lows again, and the higher we go the more interested I am in shorting this market. I ate typically won’t buy natural gas until we get to November or so, unless of course something drastically changes. Right now, even if we do have a hot August in the United States, which is very typical, it’s a short-lived thing and then you get three months of slow demand after that. It is mainly a function of the fact that we are trading the August contract that we have seen this pot more than anything else. Regardless, it’s only a matter of time before the sellers come back.

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