Natural Gas Price Forecast – Natural gas markets continue to drift
Natural gas markets initially tried to rally a bit at the open on Wednesday but gave up the gains almost immediately. That being the case, it looks as if the $2.30 level will continue to offer resistance and as it was significant support in the past it makes sense that we should drift lower. That being the case, I am a seller of short-term rallies as natural gas is an extraordinarily bearish market, and nothing has changed.
NATGAS Video 27.06.19
Even if we do break to the upside, the $2.50 level features the 50 day EMA which of course will be massive resistance. To the downside I suspect that the market goes to the $2.00 level where there should be significant support. A breakdown below that level would be catastrophic and quite frankly I’m not looking for it to happen but it’s always a possibility.
Your capital is at risk
The play going forward is to simply short this market every time it rallies a little bit. Natural gas is in low demand and oversupplied so it makes sense that we should continue to see a lot of trouble in this market. Yes, the candle stick for Monday was very impressive but the volume isn’t so therefore I’m not necessarily looking for a trend change quite yet. However, once we hit the fall I think that we will see this market bounce and rally as it does every year and it could be an excellent way to make extreme profits down the road. In the short term, this market is to be sold only.
Please let us know what you think in the comments below