Natural Gas Price Forecast – Natural gas markets soften

Natural gas markets fell a bit during the trading session on Thursday, as we continue to roll over a bit. We are getting close to the end of winter in the United States, and that of course means that we are getting outside of the peak demand season. The 50 day EMA is just below the $3.00 level, an area that also has a gap that has yet to be filled. It is because of this that I still like the idea of selling rallies as they occur, especially after signs of exhaustion near that big figure.

NATGAS Video 08.03.19

However, the 50 day EMA is starting to slope lower, so we may not quite be ready to reach towards that area and may have a bit of a dip before that happens. Either way, there’s no way to buy natural gas because quite frankly there’s just so much of it out there that it’s difficult to imagine it holding a decent price for any significant amount of time. With this, it’s a simple “sell the rallies” type of situation, much like gold was in the 1980s.

The $2.50 level underneath is massive support, and therefore I think it will be difficult to break down through there. In fact, I don’t even have that as a base case scenario. However, I do think that we testing that area seems to be very likely. I believe to short on signs of exhaustion and take profit just above the $2.50 region.

Please let us know what you think in the comments below