Natural Gas Forecast August 14, 2015, Technical Analysis

The natural gas markets fell significantly during the course of the session on Thursday, crashing into the $2.80 level. With that, the market should continue the overall consolidation that we’ve seen for some time. The markets more than likely should head to the $2.70 level given enough time, and therefore we are sellers on rallies. We believe that the natural gas markets will continue to favor the downside overall, and as a result we prefer selling at the top of the range. With this, we remain negative and recognize that although there are opportunities to buy at the $2.70 region, it is going to be much easier to simply sell short-term rallies.