Natural Gas Price Forecast – natural gas rises for Thursday

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Natural gas markets rallied significantly during the day on Thursday, breaking above the $2.80 level, gaining 1.54% by the time I recorded this video. The market looks likely to continue to try to reach towards the $2.85 level, as the choppiness in natural gas continues. · FX Empire

Christopher Lewis

Updated Thu, Aug 2, 2018, 9:44 PM

Natural gas markets continue to be very noisy but have seen a significant amount of buying pressure on Thursday more than anything else. This is a market that looks likely to be very noisy as per usual, but I think that if we can clear the $2.85 level, we could continue to go higher, perhaps even reaching as high as $3.00 where I see a significant amount of supply. However, the $2.85 level won’t necessarily be easy to break. We have gotten a bit overextended during the last 24 hours, so at the end of the day I would not be surprised at all to see the jobs number slap this thing around significantly.

I believe plenty of support is to be found near the $2.75 level, and of course the $2.70 level which is the beginning of the longer-term support region. This is a market that needs to be scalped and cannot be held onto for a long amount of time from what I see on this chart, as it takes very little to turn it around. Longer-term, I still believe that natural gas will lack pricing power, because quite frankly there is far too much in the way of supply out there longer-term to dictate that natural gas should be an expensive form of energy. That doesn’t mean we won’t get short-term rallies, perhaps going on for a couple of weeks, but at the end of the day I think we are still in the consolidation region you see on your chart.