Natural Gas Price Forecast – natural gas markets run into brick wall

Natural gas markets have tried to rally during the day on Wednesday but ran into a brick wall in the form of $2.95, which begins resistance all the way to the $3.00 above there. Because of this, I think it’s only a matter of time before we pull back, but we are starting to head towards the colder months, and it is possible that we break out as we did the last couple of winters. I think it’s a bit early for that, so a short-term pullback makes a lot of sense. This doesn’t mean that I’m willing to step in front of this market, but I would not be surprised at all to see a return to the $2.85 level relatively soon.

At that point, one would have to think that buyers would be willing to step in and pick up natural gas as demand will certainly increase soon. With that, the market looks likely to be very noisy, as it is so overextended. However, if you are patient enough you should be able to finalize value opportunity. If you are more of a short term trader, then selling an exhaustive candle is clearly possible, but if you see the market break above the $3.00 level you must simply get out of the way as it’s about to run you over. Use small positions, at least if you’re going to do the short term “fade the rally” thing. Otherwise, sit on your hands and wait for a better price if you are looking for value.

NATGAS Video 20.09.18