Natural Gas

Natural Gas Price Forecast – Testing Bottom of The Previous Trendline

Natural gas markets have rallied during the trading session on Wednesday to reach towards the previous uptrend line, and the 200 day EMA as well. That is an area that will offer a significant amount of selling pressure, and I do think that signs of exhaustion would come back into play and send this market lower. The $2.45 level underneath is support, but I think if the market were to break down below there, then it opens up a move to the $2.25 level. That is an area that I think it would be massive support, and as a result I anticipate that a bounce could make a certain amount of sense. Nonetheless, I would sell that bounce as well and is the demand for natural gas is going to fall off of a cliff.

NATGAS Video 08.04.21

The natural gas markets will probably go looking towards the $2.00 level given enough time, and that is my longer-term target. Ultimately, I think that we have recently broken through a bearish flag, and I think that gives us an opportunity to start shorting. Quite frankly, natural gas is a very difficult market for retail traders to get a handle on, because it moves based upon the weekly forecast of weather, which of course is very difficult to get a gauge on. However, longer-term we clearly have warmer temperatures coming to the northern hemisphere so my default position will be to short this market every time it shows signs of strength. I have no interest in buying natural gas until about October, so I am simply looking for opportunities.

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