Natural Gas Price Forecast – natural gas markets very noisy on Monday

Natural gas markets have gapped lower to kick off the week, and then broke down to the $2.77 level, an area that had been support of last week. I think at this point the market is trying to figure out where to go next, and therefore I would anticipate a lot of volatility. Overall, I do think that we are closer to the bottom of the overall range, so it wouldn’t surprise me to see a bit of a pop over the next several sessions. That doesn’t mean is going to be easy, and there is a lot of noise just above current pricing. Because of this, I believe that stepping away from natural gas is probably the best trade right now, as we are not in a major supply or a major demand zone.

Looking at the charts, you can see that there is a lot of confusion, but I would point out that the $2.70 level is a major support level that extends down to the $2.60 level. In other words, look at the longer-term charts we are much closer to demand then we are supply. The major supply level above is at the $3.00 level, a long way from here. That being said, I think short-term pullbacks could be nice buying opportunities as we have already seen during the day. At this point, I do remain bearish longer-term for natural gas, but I do think that we stay within the overall range for the foreseeable future, meaning that we have much more risk to the upside at this point.

NATGAS Video 31.07.18