Natural Gas Price Forecast – natural gas markets show signs of failure again

Natural gas markets spiked early on Tuesday, reaching towards the $3.75 level before falling from there. We have reached to the $3.50 level, and it now looks as if we are ready to fall and try to fill the gap. At this point, it looks likely to continue to fall from here, as we have certainly got ahead of ourselves due to the short-term cold snap. Ultimately, this is a market that I think will continue to sell off as there is far too much in the way of supply out there to have demand chew through.

NATGAS Video 16.01.19

Looking at the candle stick for the trading session on Tuesday, it looks likely that the market participants also recognize that we had gotten ahead of ourselves. The $3.00 level underneath will be massive support, so I think that it’s going to be difficult to break through that level. That’s not to say that we can, but I think it would take several attempts as it is such a large figure. Beyond that, I think that this market will revert to the short-term trading action that we are used to seeing now that we have had a couple of massive moves as of late. This is a cyclical and seasonal event, which is now decidedly over. I will revert to the same strategy that seems to work 10 months out of the year, simply fading rallies as they occur as natural gas is plentiful.

This article was originally posted on FX Empire

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