Natural Gas Price Forecast – natural gas markets volatile yet again on Wednesday

The natural gas markets were choppy as per usual, trying to break towards the $2.85 level before finding sellers yet again. By doing so, the market has turned around and showed signs of selling again. However, there is support at the $2.82 level, and I think we are probably going to see another attempt at a bounce. I would expect strong selling pressure near the $2.86 level, and of course any type of panic buying or selling could come into play depending on reports of infrastructure damage in the Gulf of Mexico.

Market participants would be well advised to stay out of the futures markets and stay with the CFD market so that you can keep your position size reasonable. At this point, the market is likely to struggle to find its footing, so it is probably a better situation to sell the rallies as per usual. The gap from the beginning of the week should offer a ceiling at the $2.90 level, but recognize that the $2.80 level has a certain amount of psychological support built in. With that being the case, I think that rally should present themselves quite often, and you should punish them every time they attempt to bid the market up. The $2.80 level underneath being broken opens the door to the $2.70 level after that. This is a market that continues to be range bound longer-term, with the $2.70 level being supported.

NATGAS Video 06.09.18