Natural Gas Price Forecast – Natural gas markets roll over on Monday

Natural gas markets have broken down a bit during the trading session on Monday, as we are below the $2.30 level again. This is an area that has caused support and resistance in the recent past, so it makes sense that the markets would react to it again. Breaking below the shooting star from Friday of course is a negative turn of events, as we continue the overall negative move. At this point, it’s very likely that we will make a fresh, new low given enough time but we may need to bounce a couple of times between now and then. The $2.40 level above is resistance as well, and just above there we have the 50 day EMA which will be the same.

NATGAS Video 02.07.19

The size of the candle stick for the trading session on Monday is worth paying attention to, as US production continues to be rather robust. With that, it makes sense that we continue to see an oversupply in this marketplace, just as we have seen for several years now. This is the wrong time of year for natural gas to rally for larger moves, simply because the northern hemisphere is not using natural gas to heat their homes right now. That being said, it is very likely that later this year we will have an excellent opportunity for a seasonal trade to the upside, but we are several months away from seeing that right now. In the meantime, selling rallies continues to offer the best opportunities in this marketplace, as it looks like we are trying to reach towards the $2.00 level.

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