Natural Gas Price Forecast February 8, 2018, Technical Analysis

Natural gas markets rolled over a bit during the trading session on Tuesday, as we continue to see bearish pressure on the natural gas markets. We are coming out of the strongest time of year, so because of this I think that the sellers are about to get aggressive every time we rally. In fact, that’s exactly what I’m waiting for: some type of rally that I can start selling. I would not be a seller at this point, because we have collapsed so rapidly. However, if we get a bounce, especially towards the $3.10 level, I think we could get an opportunity to start shorting again.

I would be very cautious about jumping in with both feet, and therefore I think that adding every time the market proves you correct is probably the best way to go. If we can get down to the $2.75 level, I think there is massive support as well. I believe that the market should find plenty of buyers in that area, but it will be short-term at best. We are entering the warmer time of year in the United States, and that should put a significant amount of bearish pressure on this market. At this point, I have no interest in trying to buy natural gas, as I believe the longer-term oversupply of natural gas is starting to come back into the marketplace.

NATGAS Video 08.02.18