Natural Gas Price Forecast December 5, 2017, Technical Analysis

The natural gas markets have gapped higher at the open on Monday, reaching towards the $3.10 level. That’s an area that has offered resistance though, and we fell apart from that point, reaching down to the $3.00 level. We ended up forming a bit of a shooting star at the $3.00 level, but then broke below it and it now looks as if we are ready to go down to the bottom of the gap, which is closer to the $2.93 level. That area should offer a bit of support, but if we break down below it, and we very well could, based upon recent action, the market could go as low as the $2.85 handle.

In general, I am negative of natural gas, but I also recognize that the seasonality for natural gas is positive as temperatures get colder United States. However, it looks like the next few days will be warmer, and that’s what the natural gas markets have been trading based upon, short-term weather forecasts. If you do not have access to decent weather information, this is almost impossible market to be involved in. In general, this is a market that has been consolidating, but the range is starting to get a bit wider. In general, I believe that the market is probably easier to sell on short-term rallies that show signs of exhaustion, but small position sizing is necessary. I think that the CFD market is where you should be trading, because quite frankly the futures market will be volatile and could be very expensive suddenly.

NATGAS Video 05.12.17