Natural Gas Price Forecast – natural gas markets choppy on Thursday
Natural gas markets have been decidedly noisy during the trading session on Thursday, which isn’t much of a surprise considering that the jobs number will greatly influence where the perceived demand is. We have pierced the $2.77 level, but after bouncing the way we have it’s likely that we will continue to be in a very difficult market for the short term. Overall though, I think that the market does favor the downside, so given enough time rally should offer selling opportunities near the $2.80 level, and again at the $2.82 level. I believe that the $2.70 level will be the target, but that has been major support to don’t be surprised at all to see the market turn right back around at that point. In fact, I’ll be down there waiting to put on a small position.
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In the short term, selling the rallies will work, but in the longer-term we still remain consolidating between the $2.70 level on the bottom and the $2.90 level on the top which extends all the way to the $3.00 level. Overall, this is a market that has been very choppy but has been somewhat reliable in the sense that we have been in this range for months now. With that in mind, I believe that the market will find a way to go back and forth. Obviously, there is a major amount of supply near the $3.00 level as fracking companies become profitable at that point.