Natural Gas Forecast August 7, 2017, Technical Analysis

Natural gas markets fell initially during the day on Friday as one would expect, being so close to a major support level in the form of the $2.75 level. The natural gas markets are extraordinarily oversupplied, so it’s likely that we will continue to see bearish pressure over all but this bounce should only offer and I selling opportunity going forward. If we can break below the $2.75 level, the market could be free to go much lower, and that is my base case scenario, that we break down massively. I think rallies continue to be selling opportunities, and therefore take advantage of them as the US dollar continues to strengthen and of course the oversupply continues to be a black cloud on the horizon for natural gas traders.

Sell rallies

Short-term traders continue to sell rallies, and I think that will be the theme going forward. There is a massive gap above at the 2.92 level, but I think that’s as far as this market will be able to rally. Right now, it doesn’t look like were going to rally like that, but if we did I would simply wait for a selling opportunity at either the $2.85 level, or the gap above there. Either way, I have no interest in buying and would become aggressively short below the $2.75 level as well. No matter what happens, I have no interest in buying this market as I believe it is a long-term bear market, and should continue to be going into the near future.

NATGAS Video 07.8.17