Natural Gas Price Forecast – Natural Gas Markets Run Into Selling Again

Natural gas markets have rallied a bit during the trading session on Wednesday, breaking above the $1.80 level. At this point, the market is likely to continue to see a lot of resistance above as we are in a major downtrend. After all, natural gas is far too oversupplied and it’s difficult to imagine that as we head into the spring traders will be looking to buy natural gas as demand drops.

NATGAS Video 05.03.20

At this point, the market continues to see the 50 day EMA above as a potential resistance barrier, which is currently at the $1.97 level. Overall, this is a market that continues to see a lot of negativity, so at this point I would be more than willing to short this market on signs of exhaustion. Overall, this is a market that continues to suffer a massive oversupply that is a structural issue, and not something that is going to happen anytime soon. At this point, the market is very likely to go down towards the lows again, which is just above the all-important $1.60 level. That is an area that the market bounced from significantly the last time I get down here, several years ago.

I think at this point it’s simply a matter of finding exhaustion that you can short and take advantage of that. At this point in time I think the market will find plenty of reasons to punish bullish actions. Until we get massive bankruptcies in the United States when it comes to natural gas suppliers, as well as drillers, it’s very unlikely that this market can strengthen for a significant move.