Natural Gas Price Forecast – Natural gas runs into resistance

Natural gas markets gapped higher to kick off the Monday session but then turned around to not only fill the gap a break down below it. This is a pretty negative sign, and at this point if we can break down below the bottom of the candle stick for the day, I think that the downtrend should continue at that point. That being said, this was a significant break to the upside so that needs to be paid close attention to. The 50 day EMA in the middle of the candle stick and the top of the candle stick from Friday of course has an influence on this market, so that is another reason to think that perhaps there is more negativity.

NATGAS Video 09.07.19

Underneath, the $2.30 level offers support as it has in the past, but if we were to break down below at the market is very likely to go looking towards the $2.20 level after that. The alternate scenario of course is that we break above the top of the candle stick for the trading session on Monday, allowing the market to go towards the $2.50 level, possibly even the $2.67 level where I see a massive amount of resistance.

Keep in mind that the market is likely to continue to focus on the overall supply and demand situation, which of course weighs heavily upon the price of this commodity. Ultimately, this is a market that although it is trying to rally due to the idea of hot temperatures, the reality is that it will be a short-term phenomenon. The overall oversupply of natural gas continues to be a major problem.

Please let us know what you think in the comments below