Natural Gas Price Forecast December 8, 2017, Technical Analysis

Natural gas markets fell significantly during the trading session on Thursday, reaching down to the $2.75 level, an area that has been massively supportive in the past. At this point, I believe that a bounce is likely, because quite frankly this level has been very reliable. At this point, I think that the short-term opportunity has this market looking towards the $2.85 level above, and perhaps even $3.10 after that. I believe that natural gas markets are essentially stuck in some type of range, and therefore it gives us an opportunity to benefit from some type of return to the main. The $3.10 level above is a great target, but quite frankly I think it’s easier to simply take profit before then. Either way, I don’t have an interest in shorting in the market in the short term. We continue to see a lot of volatility in this market, so be aware of that, but I think that trading opportunities are starting to present themselves for those who can’t take advantage of them. If we were to break down below the $2.75 level on a daily close, that would be a very soft sign.

The breakdown, while enticing, it’s likely that we will continue to see buyers jump into this market when we get negative news in the form of colder temperatures in the United States. Because of this, and the fact that the stochastic oscillator is in the oversold condition, I think it’s much more likely that the buyers take over again, just as we have seen more than once.

NATGAS Video 08.12.17