Natural Gas Price Forecast – natural gas markets sink on Thursday

Natural gas markets had been overbought for some time, forming a couple of shooting stars on the daily charts. Because of this, it’s likely that the market will continue to show signs of exhaustion, because quite frankly we went parabolic for some time. At this point, I believe that the market could go looking towards the $3.15 level, and then possibly the $3.10 level after that.

Below there, I think the three dollars level is even more supportive. I think that there will be a nice buying opportunity eventually, but in the short term I think we have gotten a bit too ahead of ourselves, and a bit of value hunting is probably likely to be the case. If you are short-term trader, you can start selling this market, but if you are a mid to the long term timeframe advocate, you are looking for value underneath. I think some type of supportive daily candle is probably what you will be waiting for at that point.

We are in the beginning of the seasonally bullish time for the markets, so I think it’s only a matter time before the buyers will come back. Overall though, I think that you are probably best simply waiting for a little bit more value unless of course you can sit at the machine and pay attention to the volatility. I would start to be interested somewhere around $3.15 and a small position, but quite frankly would love to see $3.00.

NATGAS Video 12.10.18