Natural Gas Price Forecast February 14, 2018, Technical Analysis

Natural gas markets rallied a bit during the trading session on Tuesday, gaining over 2% as I record this. I believe this is a good turn of events, because the market had gotten far too oversold. Volume isn’t exactly strong, so I suspect that this is more short covering than anything else. I believe that the $3 level above is going to continue to offer resistance, and that’s assuming that we can even get there. It seems more likely that rallies will invite more selling, but we need to bounce a bit to offer an opportunity.

If we were to break above the $3 level, the market could rally to the $3.20 level next, where I see even more resistance. I’ve got no interest in buying this market, we have seen far too much destruction and have left the bullish part of the year anyway. Because of this, I’m looking to sell rallies as they come, looking at them as opportunities. I have no interest in buying rallies, because it’s only a matter of time before exhaustion comes into play. I believe that we have a significant amount of support near the $2.50 level underneath, but it takes a while to get there in my estimation. As far as breaking down below there, that would be catastrophic for the natural gas markets, and something that I don’t think’s going to happen very easily. Volatility continues to be an issue, but that can work out in your favor if you are patient enough to wait for a significant bounce.

NATGAS Video 14.02.18