Natural Gas Forecast July 21, 2017, Technical Analysis

Natural gas markets rallied during the day on Thursday, but continue to find the area just above the $3.10 level as being far too resistive to overcome. Because of this, it’s likely that the market will find sellers, and on and move below the $3.06 level I’m a seller. Quite frankly, I’m comfortable selling here as well, but only because I would have a tight stop loss. The stop loss would be closer to the $3.12 level as there is a clear area to the $3.20 level above there. I believe that the market should continue to be negative in general, due to oversupply in the market. Also, we should worry about demand but temperatures are rising in the United States, and that could help with supply issues.

Still selling rallies

I continue to sell rallies as though, because I think it’s only a matter of time before we sell off. The market will probably go towards the $3.00 level underneath, and then perhaps even a breakdown below there to the $2.95 level. Ultimately, I think that the market will continue to be very negative, and even if we broke out to the upside, I believe that the sellers will return to this market near the $3.20 level, as there is even more resistance in that area, and it is of course a bit of an extension from where we have seen buyers jump into the market. I believe that sooner, rather than later, the sellers will return to this market.

NATGAS Video 21.7.17