Natural Gas Price Forecast December 15, 2017, Technical Analysis

Natural gas markets fell slightly during the trading session on Thursday, reaching down to the $2.65 handle. It looks as if we are trying to bounce from here though, and I think that the market is probably one that you can sell given enough time, especially if we see some type of exhaustive candle in this general vicinity. I think that the market has been very bearish for some time, and given enough time I think we are going to break down. However, if we break above the $2.85 level, we could then go to the $3.10 level after that. The overall seasonality of natural gas is strong, but at this point as we have been breaking down so stringently, it makes sense that we would be ready to start bouncing. That bounce should offer a nice opportunity going forward.

For those nimble enough, you could probably go in both directions, but I think that it’s easier to take advantage of an overbought market than it is to try and pick up a bit of a bounce. I think that the market will eventually go looking towards the $2.50 level underneath, which was the massive floor in the market longer term. In general, this is a volatile market due to the lack of liquidity at times, and as we head into the holiday season, that could be a major issue. That could lead the market to move rapidly, so by all means, be careful and keep your position size reasonable as the moves can be quite brutal.

NATGAS Video 15.12.17