Natural Gas Price Forecast February 7, 2018, Technical Analysis

Natural gas markets continue to be very soft, and I think now every time we rally you need to start looking for selling opportunities, especially near the $3.00 level. However, if we break above there I’m not willing to start buying, and at that point I would be willing to sell at higher levels. The $3.10 level could be and I selling opportunity, just as the $3.20 level would be. I’m looking for signs of exhaustion after rallies to take advantage of, as we have seen such a collapse in pricing power.

Typically, during the month of January we see the peak in natural gas pricing for the year as the northeastern United States has a lot of demand. As the future markets look forward, they are starting to price in spring trading, which means that prices should go lower. I believe that at this point, we will probably go looking towards the $2.75 level, which has been supportive on the longer-term charts. However, we are bit oversold, so I prefer selling rallies as opposed to jumping in now.

Volatility of course will continue to be an issue, but that’s typical for natural gas. As volume has dropped during the trading session on Tuesday, this suggests that perhaps we may get a bit of short covering, but at this point I think that should only offer opportunity if you are patient enough. I will keep you abreast as to what I’m doing here at FX Empire.

NATGAS Video 07.02.18