Natural Gas Price Forecast – natural gas markets fall hard on Friday
Natural gas markets have fallen rather hard during the day on Friday, showing signs of breaking down again. However, the $2.75 level is the beginning of massive support down to the $2.70 level, so I’m waiting to see if we get some type of bounce or supportive candle to start buying. This is the bottom of the longer-term consolidation that has been so crucial for the market as of late, so at this point I have no interest in trying to fight what’s going on. I think a buying opportunity should present itself rather soon, as we will very shortly be trading winter month contracts. Obviously, the demand for natural gas in the United States is much higher during the cold months, and that has a massive influence on natural gas.
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At this point, I am probably going to wait for some type of daily candle of support to start buying. At the very least, I would wait for some type of hourly hammer. I don’t have any interest in shorting this market unless of course we were to break down below the $2.70 level, something that seems very unlikely. At this point, trading natural gas will be a simple matter of patience, and it may take a couple of days to get the appropriate set up to start buying, but I certainly think we are at the area that more than likely will offer that opportunity relatively soon.