Natural Gas Price Forecast – natural gas markets slightly negative on Thursday

Natural gas markets drifted a bit lower during the day on Thursday, continuing the bearish pressure that we had seen over the last several days. I think that the market is going to continue to drift lower, and therefore it’s a nice shorting opportunity. · FX Empire

Christopher Lewis

Updated Thu, Jul 12, 2018, 9:47 PM

Natural gas markets initially drifted a bit lower during the day on Thursday, before testing the $2.80 level. I think that the market is going to continue to go bit lower from here, and more of a gradual decline than anything else. I’m not looking for some type of massive meltdown, rather a nice shorting opportunity that continues to offer opportunities every time we rally. This is a market that I think will see a lot of resistance above the $2.85 level, and therefore I think that this market should offer plenty of opportunities. I have no interest in buying this market, I believe that the oversupply of natural gas will continue to be a major problem. Overall, I think that we will go looking towards the $2.75 level, followed by the $2.70 level, and then followed after that by the $2.60 level.

If the US dollar strengthens, that also puts a little bit of bearish pressure in this market, although it’s not as sensitive as other commodities can be. We are going to see higher temperatures in the United States over the next week or so, so it could drive up demand temporarily, but the keyword there is simply “temporarily.”

I do think that the $2.60 level will hold though, and that this move is simply a return to the bottom of the longer-term consolidation more than anything else. It’s a nice range bound market if you can’t be patient enough to wait for rallies to sell in these moves, and of course the outer extremes of the rectangle.