Natural Gas Price Forecast August 3, 2017, Technical Analysis

The natural gas markets were sideways during most of the day on Wednesday, but dipped enough to test the $2.77 level. As we rallied, the sellers came back in and started pushing the market a little bit lower. I believe that the $2.85 level above should be resistive, and I believe that given enough time sellers will return every time we try to get into the market to the upside. I believe that there is a gap above that could be targeted, so given enough time I think that if we do reach that area, it should be massively resistive. The $2.75 level underneath should be massively supportive, and if we can break down below there, that should be a market that is ready to go much lower, perhaps reaching towards the $2.50 level underneath.

Selling rallies

The market should continue to sell off every time rally, and that’s exactly how I’m going to play the natural gas markets. We are oversupplied, plain and simple. Given enough time, I think that we breakdown to the $2.50 level, but that is a longer-term call. In general, I preferred to look at this market as a short-term traders’ type of market, selling rallies as they occur. I see no reason that the natural gas markets will change the trend anytime soon, as we continue to see more fracking in the United States, not less. I am very bearish and natural gas longer-term, but realize there seems to be a significant floor near the $2.50 level.

NATGAS Video 03.8.17