Natural Gas Price Forecast – natural gas continues to reach higher

Natural gas markets rallied significantly during the trading session on Thursday, reaching towards the $3.00 level, an area that began significant resistance that extends all the way to the $3.10 level. I think that there are a lot of opportunities for sellers to jump into this market on signs of exhaustion, but certainly right now it looks as if the buyers are in control. Ultimately, I suspect that we will get a short-term surge higher but keep an eye on longer-term charts for signs of exhaustion between the $3.00 level in the $3.10 level above.

If we can somehow break above the $3.10 level, that would be a major turn of events in this market, as it would show a major break out, and continue to strengthen this market. However, I anticipate very significant pushback in that area, so short-term scalpers may be willing to go along in this market, but I think that the longer-term minded investor will be looking for an excuse to start selling just above. The market could break down to the $2.88 level rather significantly from that level, and then possibly even $2.60 based upon the longer-term consolidation box.

One think you can count on is volatility in this market, as natural gas tends to focus on the short term. Looking at the US weather reports for the following week seems to be one of the most important things you can do when trading this commodity, but longer-term there certainly is a major oversupply of the commodity.

NATGAS Video 22.06.18