Natural Gas Price Forecast – Natural Gas Markets Testing Major Level

Natural gas markets have initially tried to rally during the trading session on Monday, but then fell apart to reach towards the $1.80 level underneath. That’s an area that has been supportive recently, as well as in the past. Ultimately, the market was to break down below the $1.80 level, then it’s likely that we could go looking towards the $1.60 level underneath. Rallies at this point should be selling opportunities, and as a result it’s likely that the market is simply going to be an opportunity to short every time it rallies, as we have seen month-to-month again. Ultimately, this is a market that has a massive oversupply problem and will continue to until we get some type of wave of bankruptcies, something that is certainly coming down the road in the United States.

NATGAS Video 04.02.20

The $2.00 level of course is resistive, just as the $2.20 level should be resistive as well, so I’d be looking for selling opportunities in that area as well. Ultimately, this is a market that cannot be bought until we get serious industry disruption, something that is going to take some time. 2020 is going to be an interesting year for natural gas, because as bankruptcies pile up, that will dry up the supply eventually, but it’s going to be a process, not something that happens all at once. In the meantime, selling is the only thing you can do, hopefully at higher levels so that you can take advantage of more momentum and real estate in that scenario.

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