Natural Gas Price Forecast December 14, 2017, Technical Analysis

Natural gas markets went back and forth during the trading session on Wednesday, reaching towards the $2.75 level. That’s an area that was previous support, so it makes sense that we are starting to see a bit of resistance here. The one-hour chart is showing the stochastic oscillator reaching towards the overbought condition, and looks like it could cross over again. If we were to break above the $2.85 level, that should be a strong move, but I don’t think it’s going to happen in the short term. Now that we have broken down below that area, it’s likely that we should go down to the $2.50 level.

In general, I believe that selling the rallies will be the way going forward, as a breakdown during this time year is unusual indeed. Typically, we get a strong rally in this market as temperatures plunge in the northeastern part of the United States. The fact that we have not says more than I ever could, showing you just how weak the market is. If we did somehow break above the $2.85 level, I think there is a massive ceiling just above the $3.10 level above, and that should continue to be the anchor around the neck of natural gas. The market is decidedly bearish, and it’s difficult to imagine a scenario in which I would want to fight that as the oversupply continues to be a massive problem.

NATGAS Video 14.12.17