Natural Gas Price Forecast – Natural Gas Markets Stall

Natural gas markets have gone back and forth during trading on Thursday, as we continue to test the $2.00 level above. At this point, the market looks as if it sees plenty of selling there but I also recognize that something could be trying to change fundamentally when it comes to the natural gas markets. After all, there are a lot of concerns out there when it comes to whether or not the natural gas demand will pick up, but perhaps more important to the market these days is the fact that there are going to be a lot of bankruptcies coming out this year when it comes to the entire sector.

NATGAS Video 24.04.20

If the bankruptcies are brutal enough, there is the possibility that we finally work through some of the supply. However, the oversupply has been the main story in the fact that the markets continue to focus on the fact that the temperatures are going to get warmer suggests that we are going to struggle to break out to the upside until we get these massive layoffs and bankruptcies. Even then, I think the upside is somewhat limited but could lead to a surprise pop higher over the course of the summer. From a technical analysis standpoint, I suspect that we are probably going to go looking towards $1.80 level underneath which is the 50 day EMA and “fair value” based upon the consolidation that we have been in. Again though, keep in mind that the futures contract is rolling over so that should be paid attention to as well as it could cause some weird moves.