Natural Gas Price Forecast – natural gas markets pulled back significantly on Friday

The natural gas markets initially drifted higher during the day on Friday, but then fell rather significantly during the trading session on Friday. I think that the market has gotten a bit overbought, so at this point it makes sense that we would see a pullback to find demand underneath. · FX Empire

Christopher Lewis

Updated Fri, Oct 5, 2018, 10:36 PM

Natural gas markets broke down a bit during the trading session on Friday, slicing through the $3.20 level, and then eventually down through the $3.15 level. I think at this point, the market also has support at the $3.10 level, and of course the three dollars level after that. Overall, I think that the market continues to be very volatile, but I think that there are plenty of buyers in this market judging by the fact that we have had an explosive move to the upside. We found a significant amount of pressure at the $3.25 level and fell rather significantly.

Overall, I think that the market has gotten ahead of itself so I think you’d be better off probably waiting for some type of support underneath in order to go long based upon value. If we were to break down below the $3.10 level, I think the market probably drops down to the $3.00 level next. If we break down below the $2.95 level, the market then breaks down to the $2.75 level. Overall, I expect a lot of choppiness, but I think short-term you may be able to short this market but given enough time I think eventually the demand comes back into play. We have clear ranges between $0.10 levels that we could use for support and resistance based upon the recent historical trading. Obviously, we are in a seasonally bullish time of year, so I do prefer buying more than anything else.