Natural Gas Price Forecast 16, 2018, Technical Analysis

Natural gas markets have gone back and forth during the day on Thursday, ultimately settling on negativity. The market is reaching towards the $2.50 level underneath. The market is extraordinarily oversold, so I think that the market will eventually rally, giving an opportunity for short-sellers to get involved higher levels. That’s exactly what I’m planning to do, as I think that the markets leaving the wintertime in North America a means that demand will nosedive. We also are starting to see grounds fall again, so that means more fracking is about to come online.

I believe that the $3 level above is extraordinarily resistive, and I think it’s not until we break above there that I can take to rally seriously. Even then, I suspect that the $3.10 level will be very resistive as well, but I recognize that waiting for some type a rollover after a rally is going to be something that will take a lot of patience. If we do break down to a fresh, new low, I anticipate that the $2.50 level will be massively supportive as well. If we were to break down below there, it’s hard to tell where natural gas window, because it would be such a massive move of destruction that would rock the markets to the foundation. Being patient and waiting for an opportunity to sell is probably the best thing you can do. As far as buying any type of bounce is concerned, it would be reckless to say the least.

NATGAS Video 16.02.18