Natural Gas Price Forecast – Natural gas markets roll over

Natural gas markets tried to rally during the trading session on Friday but then rolled over to show signs of exhaustion again. By doing so, it looks as if we may drift towards the $2.50 level again. That’s an area that is significant support, so don’t be surprised at all if we see another bounce again. Quite frankly though, if we break below the $2.50 level, we could capitulate and go all the way down to the $2.25 level. I think at this point, the sellers most certainly have the upper hand, because although we have significant lack of supply in the storage tanks right now, it’s only a matter of time before the drilling catches back up as demand drops this time of year as per usual.

NATGAS Video 06.05.19

The 50 day EMA above, pictured in red and hanging about the $2.71 level should continue to be massive resistance. At this point, if we were to break above there we probably go towards the $2.90 level. At this point, it’s unlikely to be a scenario where we can break above there. Quite frankly rallies continue to be nice selling opportunities, as there is no reason to believe that the overall attitude of the market is going to change anytime soon. In fact, it looks as if the $2.50 level is becoming more and more vulnerable. Look for signs of rallies that are failing and continue to short them, that’s what I will be doing going forward.

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