Natural Gas Price Forecast – Natural Gas Continues to See Selling

Natural Gas Technical Analysis

The natural gas markets have drifted a little bit lower during the trading session on Monday in the early hours as market participants continue to see a lot of noisy behavior. That being said, I think it’s probably only a matter of time before we have to ask questions of $2.80 underneath, which is an area that previously has been supported.

If we break down below there, we could at least in theory be looking at a bit of a “head and shoulders pattern”, which of course has people standing up and paying attention. And for what it is worth, it could kick off an 11% drop, which would have this market perhaps going down to the $2.50 level, an area that is very important, very well known as market memory. And of course, probably has quite a bit in the way of options barriers.

So that would make a certain amount of sense. Keep in mind that natural gas markets have gotten a little ahead of themselves. And with that being the case, a little bit of a give back does make sense. Ultimately, I think it’s probably only a matter of time before we see the buyers come back due to the fact that we are looking at colder temperatures in the United States coming as we start to trade winter contracts in the futures market. That being said, look for value, don’t just simply chase the market to the upside, as this market can be volatile to say the least.

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