Natural Gas Price Forecast February 13, 2018, Technical Analysis

Natural gas markets have been drifting a bit lower during the last several sessions as you know, and of course Monday was in any different. The market of course is negative, and even if we do rally from here I would be very hesitant to start buying. I think the prudent way to trade the natural gas markets is to wait for some type of exhaustion after a bounce. We will certainly get a bounce eventually, because the market can’t continue to fall apart without some type of reaction.

I believe that the $2.80 level above should be resistive, and I think that this area has already shown itself to be supportive, which of course makes sense as market memory comes into play. The $3 level beyond that is resistive as well, so I’m waiting to see some type of rally towards one of those areas that show signs of failing before I start shorting again. It’s obvious that market participants are bearish, and we have exited the time of year where there is bullish pressure for the commodity itself. The United States is starting to warm up a bit, and most certainly will be warm and the next couple of months, driving down the demand for natural gas overall. I think at this point, any rally will end up being a relief rally at best, giving us opportunities to go short repeatedly. Buying is all but impossible.

NATGAS Video 13.02.18