Natural Gas Price Forecast December 20, 2017, Technical Analysis

Natural gas markets continue to be very noisy during the trading session on Tuesday, as the $2.75 level offers resistance. This was a massive support level previously, so it makes quite a bit of sense as a resistance barrier. I think that the natural gas markets breaking down the way they did this late in the year, it’s likely that we will continue to struggle to keep gains. Any time we rally, I believe it is only a matter of time before the sellers come back, because we recognize that there is a massive oversupply issue going forward. If natural gas markets cannot hang on to the gains in this month, then when can they? I believe that the market should continue to be very noisy, so I think that we will have opportunities to short this market several times between now and spring. The $2.85 level above is also resistive, so if we do breakout to the upside, I will start shorting on the first signs of exhaustion in that area.

Longer-term, I see a massive support barrier at the $2.50 level, as it was the massive lows that we had seen for some time. I believe that the market will not be able to break down below there, but it certainly looks as if it wants to try to test that area again. Ultimately, this is a market that I think will be noisy, but obviously have a lot of detractors. Buying isn’t even a thought although I recognize that we could rally occasionally.

NATGAS Video 20.12.17