Natural Gas Price Forecast – natural gas markets slam back and forth on Wednesday

Natural gas markets have initially pulled back during the trading session on Wednesday but found support just above the $3.15 level to rally towards the $3.25 level in early trading. There is a significant amount of resistance building at the $3.25 level, so a pullback from here would not be much of a surprise. I think that the $3.15 level will also offer support, so this point I am willing to buy the dips, and I recognize that below the $3.10 level there is an even more significant level in the form of the $3.00 handle. If we were to break down below there, things would change but it looks as if the seasonality of natural gas continues to keep it somewhat afloat, and therefore I like the idea of buying natural gas on these dips but I would not hang onto that trade very long as it simply cannot seem to break out. I also recognize that the $3.35 level above is massive resistance as well, and in the short term I don’t expect to see this market break above there.

Looking at this chart, I do recognize that we are trying to form a bit of a “rounded bottom”, but I think we have a long way to go at this point. Beyond that, a break above the $3.35 level would be very bullish, but it would be quite surprising considering how much supply of natural gas there actually is out there and the fact that the American fracking companies become very profitable above the $3.00 level.

NATGAS Video 25.10.18