Natural Gas Weekly Price Forecast – natural gas markets running out of hope?

Natural gas markets fell during the week, reaching down towards the $2.75 level underneath, with the $2.60 level underneath being massive support and the bottom of the overall consolidation area. This is a market that longer-term has a lot of negativity attached to it as we have far too much in the way of natural gas out there to keep demand up for a long time. I believe that the area above the $3.00 level should continue to be massive resistance, and I think that any time we rally the sellers will come back. The $2.60 level underneath is massive demand though, so I think that’s as far as we are going. This is a market that has plenty of negativity into it in the short-term, because we are starting to see a lack of demand, and of course there is a massive oversupply of natural gas to begin with. With this in mind, and of course the strengthening US dollar, it makes sense that we drift lower.

I would be very cautious about trying to put too much money in a long position right now, so I prefer to sell rallies as they prefer, or if you can put a smaller position on simply ride out the volatility down to the bottom. The market continues to be noisy, but in the end I still retain a very negative bias when it comes to this market.

NATGAS Video 16.07.18