Natural Gas Price Forecast – natural gas markets search for support on Thursday

Natural gas markets broke down a bit during the trading session on Thursday to kick off the day, but the $3.20 level has offered a bit of stabilization and support. Beyond that, I think that the market will continue to find support at the $0.05 levels, as we continue to see a strong uptrend, but we are a bit overbought in general. I think pullbacks offer plenty of buying opportunities, as the market certainly seems to have quite a bit of buying pressure underneath. I think the market is going to continue to enjoy the seasonality of bullishness, as we are trading the November contract in the futures market. Ultimately, it looks as if the market is focusing on colder temperatures in the United States.

I suspect there’s a lot of demand that the $3.15 level in the short term, but even if we break down below there I think the $3.10 level underneath is even more supportive. In other words, I don’t have any interest in shorting this market, at least not right now. Typically, we will see the market rally into the holiday season, and then start to sell off early in January will we focus on spring time futures markets. Market participants continue to focus on short-term weather reports though, so keep that in mind. Beyond that, inventory numbers tend to be very volatile in this commodity. Keep your position size small.

NATGAS Video 05.10.18