Natural Gas Price Forecast – natural gas markets roll over slightly on Wednesday

Natural gas markets tried to reach the $3.00 level during early trading on Wednesday but failed. By rolling over the way they have, it appears that the market continues to be very range bound overall. As we reach these high levels, I think there is plenty of supply out there to continue to push pricing down. I have been saying for some time that we continue to see sellers at the $3.00 level above, and that the $2.76 level underneath is massive support. At this point, the market looks very likely to stay within that range, so as we are close to the vital resistance, I am more than willing to start shorting again. I recognize that the market will be very choppy, but quite frankly that’s the attitude of natural gas traders in general.

Underneath, I see the $2.95 level as minor support, followed by the $2.90 level after that. Obviously, the $2.70 level is a major support underneath, as the bottom of the overall range. I think that short-term back and forth trading will continue to be the case, and I think at this point it’s likely that you will have to keep an eye on short-term charts. Obviously though, as we are at these high levels I think that the true risk is to the downside until we close above $3.00 on a daily chart. That would of course change things, but it would take a lot to make that occur.

NATGAS Video 23.08.18