Natural Gas Price Forecast February 28, 2018, Technical Analysis

Initially fell during the trading session on Tuesday, reaching down to the $2.65 level, but turned around to bounce rather drastically as weather reports are starting to suggest that after March 6, we are going to get colder temperatures coming to the United States. That obviously will drive up demand, but more importantly it gives us an opportunity for the market to rally in the short term, so that we can sell this market at higher levels. At this point, I think that the market needs to get a bit of a “short covering rally” before we can start selling. I would love to see this market rally towards the $3 level where I would anticipate a lot of trouble, and therefore give us an opportunity to take advantage of the longer-term momentum.

If we break above the $3 level, the $3.25 level should then be massively resistive as well. At this point, I do not want to buy this market, I don’t care what the market does in the short term, because longer-term there is certainly a lot of negativity around the oversupply of natural gas, and of course the lack of demand going forward as we are exiting the busiest time of year. Natural gas producers in the United States have been attracted to the higher pricing, so therefore fracking will certainly fill the supply stations around the world. I have no interest in trying to buy this market but would rather wait patiently for my selling opportunity.

NATGAS Video 28.02.18