Natural Gas Price Forecast – natural gas markets do nothing on Friday

Christopher Lewis
Updated
Natural gas markets did very little during the day on Friday, as we continue to grind sideways. We are just above a major support level, so keep that in mind.

Natural gas markets did very little during the trading session on Friday as we continue to hover above the psychologically important $2.50 level. That’s an area that of course will attract a lot of attention due to the fact that it is a round, large, psychologically significant figure. Beyond that, we also have to worry about the fact that we are at historically low levels, so it’s very likely that it’s going to be difficult to break down. However, if we do it’s very likely that will drop down to the $2.25 level, perhaps even down to the $2.00 level. That could be the “capitulation” where we would turn around. At this point though, I think it’s obvious that we need to sell at higher levels and simply take advantage of the downward momentum.

NATGAS Video 18.02.19

At this point, I think that natural gas supply cannot be bought because we are not only leaving the seasonably bullish time of year, but we also have to worry about global demand dampening not only due to weather, but simple growth problems. With that, I continue to fade rallies but quite frankly we haven’t had one in a while. There hasn’t been much to do with this market, so I keep this chart pulled up on my trading platform and check them every day. I’m looking for signs of exhaustion after rallies so that I can take advantage of more real estate to start selling. I have no interest in buying natural gas at all, because as somebody who lives in the United States and in the one of the biggest fracking regions, I can tell you that natural gas is beyond abundant.

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This article was originally posted on FX Empire

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