Natural Gas Price Forecast February 19, 2018, Technical Analysis

Natural gas markets have drifted a bit lower during the trading session on Friday, as we continue to unwind the overall bullish trade that had happened at the end of January. Warmer temperatures are coming to the United States, and that will put a lot of bearish pressure on the natural gas markets as demand dwindles. Beyond that, it looks as if US fracking is going to skyrocket in 2018, so that should continue to put bearish pressure on this market. The one thing that does help at this point is going to be that the US dollar has been struggling, but I think in the end that will be somewhat of a limited factor.

I believe that natural gas markets will eventually rally, and once we do we should see plenty of resistance above. I’m waiting for a couple of days’ worth of bullish pressure, and then perhaps some type of roll over. The alternate scenario is that we break down below the $2.50 level, and perhaps even the $2.40 level, the market will unwind rather drastically and break apart. I don’t think that’s ready to happen quite yet, but the rally will be overdue, because when you look at the longer-term charts, we have gotten completely oversold. I look at those oversold bounces as an opportunity to take advantage of the bearish pressure that will be a longer-term issue in this market.

NATGAS Video 19.02.18