Natural Gas Price Forecast – natural gas markets pulled back from rally
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The natural gas markets initially tried to reach towards the $2.79 level above but broke down significantly from there to reach below the $2.77 level. It looks as if the market is getting a bit exhausted as I record this video, and I believe that we will continue to drift lower, perhaps reaching towards the $2.75 level, and then eventually the $2.71 level again. If we can break down below the $2.70 level, the market could unwind rather drastically, perhaps reaching down to the $2.60 level underneath. That has been the bottom of the larger consolidation area, and I think that the market participants will look at that as an excellent buying opportunity. It also makes a juicy target for sellers. Because of this, I think we will eventually go looking towards that level.
In the short term though, it’s likely that we will try to reach to at least the $2.70 level, where the significant demand returns. Short-term traders will continue to sell short-term rallies as we have seen during the day, and I think it’s only a matter of time before they get their way. Even if we did break higher, for me I believe that the $2.80 level and the $2.85 level will both be far too resistive for the market over, in the short term. Expect volatility, but certainly the downside is the safer bet.
NATGAS Video 27.07.18
This article was originally posted on FX Empire