Natural Gas Price Forecast – natural gas markets slightly lower on Friday

Natural gas markets fell slightly during the Friday session, but quite frankly it wasn’t much of a loss. What’s even more concerning than that is the situation on the longer-term charts. The $3.00 level is a major barrier that I have been talking about for some time, and we are starting to get close to it. I suspect there’s probably a selling area between there and $3.10 just waiting to happen, and because of this I think that it is only a matter of time before the overall range bound attitude of the market takes over again. If it does, we should get a nice selling opportunity above.

My main thesis is that nothing has changed, so pricing shouldn’t change. We have been bouncing around between the $2.70 on the bottom and $3.00 level on the top. We are obviously much closer to the top than the bottom, so I think the sellers are probably coming back rather soon. The general attitude of the market has been one of back and forth malaise, and I think that will end up being what we see going forward as well. Quite frankly, I don’t see the catalyst to change things for the longer-term coming anytime soon.

Hot temperatures in the United States are soon going to be a thing of the past, and that  will drive down demand as well. That could be the excuse to rollover, but quite frankly from a technical analysis perspective, it’s just a good place to sell.

NATGAS Video 13.08.18