Natural Gas Price Forecast – natural gas markets roll overNatural gas markets trying to rally during the session on Tuesday but rolled over and broke below the $2.80 level again. Ultimately, this is a market that looks very suspiciously heavy, so therefore I think that we are probably going to continue to see more downside.
You been following my analysis here at FX Empire, it should be no surprise that I’m about to suggest that this market has been range bound, between the $2.70 level on the bottom, and the $3.00 level on the top. Because of this, I think that the market is probably going to continue to be one that you can trade from these levels. I believe that ultimately the market will try to reach the $2.70 level, but I also recognize that the $2.70 level was very resilient just 24 hours ago. Ultimately, there is a support zone of sorts from the $2.75 level down to the $2.70 level that I think the market will continue to pay attention to. At this point, I think it’s easier to sell rallies than anything else but I would be more than willing to start buying this market on some type of daily supportive candle in that aforementioned range.
We are starting ahead into colder temperatures in North America, and that of course will drive up demand for natural gas. Beyond that, Europe is also heading towards colder temperatures in the next few months so people will try to front run the demand. This is a seasonal thing when it comes to natural gas, so it makes perfect sense. I believe that ultimately the markets will turn around and rally, but we may have a few more weeks of selling pressure. Stick to short-term charts, they seem to be the most reliable in the immediate future but be very conscious of the support level underneath for the longer trade.