Natural Gas Price Forecast August 10, 2017, Technical Analysis

The natural gas markets initially dipped on Wednesday, but then exploded above the $2.85 level. We are starting to run into a bit of exhaustion though, and we are approaching a gap from late July. I believe that the sellers are going to come back and as the market has gotten ahead of itself. I continue to sell natural gas longer-term, and moves like this are opportunities to sell from higher levels. Quite frankly, I don’t think the market can get above the $2.93 level because of that gap. Ultimately, I think that the market should continue to reach to lower levels, and be attracted to the $2.75 level underneath. While the move was impressive during the day Wednesday, it does look exhausted already.

Continue to sell rallies

I continue to sell rallies on signs of exhaustion, as we see the market cause quite a bit of volatility, but the oversupply of natural gas will continue to be very difficult for the market to overcome. Given enough time, I believe that selling is the only thing you can do, and I have done quite well doing just that over the last couple of years. There is nothing on this chart the changes my attitude.

NATGAS Video 10.8.17