Natural Gas Price Forecast February 20, 2018, Technical Analysis

Natural gas markets have drifted ever so slowly to the downside during the day on Monday, as we continue to see weakness in a market that quite frankly has imploded. However, I think that a bounce is necessary for you to get the opportunity to start selling, and with the low volume at best you are looking at some type of scalping opportunity. I certainly wouldn’t be buying natural gas though, because the markets are going to continue to be over supplied. Ultimately, if we were to break down below the $2.60 level, I think then we could go looking towards the $2.50 level, which is even more significantly supportive.

While I do believe that a bounce is coming, I have no interest in trying to buy that bounce, because there is a massive amount of selling pressure above. By taking your time, and awaiting the proper opportunity, you can sell a market that has been significantly soft over the last couple of weeks and has imploded as we left the bullish time of year for natural gas. If we break down below the $2.50 level, that will be catastrophic, and could unwind this market even further. I think that the market rallying at this point in time will attract a lot of larger traders, and they will eventually start punishing natural gas again. I anticipate that the $3 level above will be a bit of a “ceiling” in the meantime.

NATGAS Video 20.02.18