Natural Gas Price Forecast February 22, 2018, Technical Analysis

The natural gas markets initially dipped during the trading session on Wednesday, reaching down towards the $2.60 level. That is an area that I think continues to offer plenty of support, and this bounce is probably needed. If you are short-term trader, you might be a will to take advantage of this bounce but quite frankly I prefer to sell this market on these rallies as we have a massive oversupply in the natural gas markets, not to mention the fact that we are starting to get towards the end of winter in the United States, and that should continue to put bearish pressure on natural gas overall.

However, we have fallen apart rather drastically, and it makes sense that we would get a bit of a short covering rally, perhaps offering an opportunity to sell at higher levels. I believe that the $3 level above should be a bit of a “ceiling”, and I think that it will be difficult to break above there. Quite frankly, if we break above there I’m even more interested in selling and have no interest in trying to buy natural gas. Again though, if you are a short-term trader, you might to take advantage of this burst higher, but you will have to get out of this market as soon as it turns against you, something that’s very difficult to do, and I have learned over the years it is better off to simply wait for a trade the goats with the overall fundamental outlook.

NATGAS Video 22.02.18