Natural Gas Price Forecast – Natural gas showing signs of support

Natural gas markets gapped lower to kick off the trading session on Monday, and then fell towards the crucial $2.00 level. At this point, it looks like any bounce at this point will probably attract some attention, but quite frankly I think there is more than enough resistance above the continued to push this market lower. After all, we have a massive shooting star that formed from Thursday just below the 50 day EMA that suggests that we could break back down below there. This is a market that continues to be very negative, so any type of bounce from here I think continues to attract attention for sellers. That being said though, we are getting dangerously close to a major support level, at least from a psychological standpoint.

NATGAS Video 06.08.19

I believe that the $2.20 level above should continue to offer resistance, as the break down from there continued to show volatility. I think that signs of exhaustion near that area should be a selling opportunity, extending all the way to at least the 50 EMA which has been very reliable. Longer-term though, I think that we are getting very close to try to form some type of bottom, but presently we are trading the September futures contract, so it won’t be until we roll over until a later contract that will drive up price due to cold weather. We are getting close to the end of the downtrend, at least momentarily, but we still have further to go.

Please let us know what you think in the comments below