Natural Gas Price Forecast – Natural Gas Markets Continue To Show Signs Of Consolidation At Low Levels

Natural gas markets have fallen a little bit during the trading session on Friday but found a little bit of support near the $1.65 level to bounce a bit. Ultimately though, this is a very messy and choppy market that has an overall downward attitude. I think at this point you need to be looking at rallies as opportunities to sell, especially near the $1.80 level, possibly even the $2.00 level. I like the idea of fading any type of bounce that appears in this market, because quite frankly the demand is going to continue to be very lackluster. The global markets are slowing down, and economies are essentially locked up. This drives down demand in and of itself, not to mention the fact that temperatures are starting to get warmer, driving down demand even further.

NATGAS Video 30.03.20

I do believe that it is only a matter of time before we turn things around, but that’s probably due to the looming bankruptcies that are coming. That isn’t necessarily a quick process, so it may take a while before that bullish pressure gets here. Ultimately, this is a market that will continue to have a lot of pressure on it, with the 50 day EMA at the $1.86 level, and the 200 day EMA at the $2.21 level and dropping. I cannot imagine a scenario in which I am a buyer of natural gas, it’s simply a “fading the rallies” type of market that we are in. We are at extreme lows, so there isn’t much to do other than to let the market bounce so that you can squash it again.