Natural Gas Price Forecast – natural gas markets volatile in choppy on Thursday

With the majority of natural gas traders being based in the United States, it makes sense that volume would be an issue the day after Independence Day. Because of this, I think that the market will look at this as a bit of a “one-off” with the rally early, and then the market breaking back down. Obviously, there is much more bearish pressure than bullish, so I think rallies at this point should be thought of selling opportunities that you can take advantage of. I don’t have any interest in buying this market, at least not until we break above the $2.90 level, and even then I would do so just for a short amount of time. That could be a minor rally, but at the end of the day I think the market is very likely to go looking to lower levels, with the $2.70 level being a target, and then eventually the $2.60 level.

Temperatures are dropping in the United States getting us out of a heat wave, and that of course will drive down demand for natural gas. Beyond that, the US dollar remains strong overall, so it makes sense that commodities may struggle. Today as the jobs number, so that of course has a significant effect on the Forex markets, and of course the idea of demand for energy, natural gas included. I anticipate that we are going to see lower levels though, so I’m a net seller.

NATGAS Video 06.07.18