Natural Gas Price Forecast – Natural Gas Markets Test Lows

Natural gas markets have gone back and forth during the trading session on Wednesday as we continue to bounce around the $1.60 level. To the upside, the 50 day EMA is hanging about the $1.80 level, and I think at that point we will see plenty of selling pressure. I am looking at this as a market that is certainly bearish, and it should be for quite some time considering the fact that the oversupply is an enormous, although we could see a slew of bankruptcies rather soon when it comes to the natural gas industry, which quite frankly would be the best thing that could happen for this market in general.

NATGAS Video 16.04.20

Until then, I am selling rallies as they occur, and ignoring bounces. Don’t be wrong, you can make an argument for the market rising from here, but quite frankly the easy money has been shorting it every time it rises about $0.10, or possibly even $0.20 going back several months. Ultimately, I do believe that the market is probably going to continue to go towards the $1.50 level, but below there is a bit difficult to imagine.

Not only do we have a serious oversupply of natural gas, but we have warmer temperatures coming in the northern hemisphere, naturally driving down demand. Furthermore, the coronavirus lockdown of the world’s economy is also driving down the demand for natural gas as well. Ultimately, I think that we need mass disruption in this industry before we turn things around. Don’t be wrong, I don’t think we melt down from this extremely low level, and I do suggest that rallies are not to be trusted.