Natural Gas forecast for the week of February 26, 2018, Technical Analysis

Natural gas markets rallied slightly during the week, as we have seen a lot of noise in a very tight range. As you can see, we have made a complete 180 when it comes to the original move higher, but we are currently consolidating in my estimation. It is because of this that I believe it is only a matter of time before we rally again. That rally will find resistance above, not only at the $3.00 level, but also the $3.50 level. I look at those rallies as an opportunity to start selling again, and I believe that a breakdown below the $2.50 level is also a selling opportunity. I would not sell here, because at this point it is likely that we will get some type of bounce, simply because we are a bit oversold. I don’t have any interest in buying that bounce though, because I think it is an imitation to make a huge mistake.

This market should continue to be noisy, but I also think we can continue to look at the oversupply of crude oil as a major factor in this market. I think that the warmer temperatures coming in the United States should continue to drive down the demand for crude oil, and therefore the price. I also recognize that we are going to see more fracking now, as producers have come into jump all over the higher pricing that we have seen as of late. I have no interest in buying.

NATGAS Video 26.02.18