Natural Gas Price Forecast January 12, 2018, Technical Analysis

The natural gas markets have rallied significantly during the trading session on Thursday, breaking above the $3 handle. I think there is a significant amount of resistance extending to the $3.10 level though, so it’s likely that the markets will continue to find resistance above, and I think that selling pressure will eventually present itself. Having said that, I would not be shorting this market right now. I would wait for a day or 2 of exhaustion before start shorting. If we break above the $3.20 level, that would be a very bullish sign. Until then, I look at this is a potential selling opportunity but certainly will let the market tell me when it’s ready to roll over.

The market should continue to be one that is very volatile, as the natural gas markets are very thin, and of course the seasonality comes into play while at the same time dealing with the mass of oversupply in the natural gas markets will cause a lot of noise. The seasonality is positive for natural gas, but quite frankly every time we have rallied significantly, the market has rolled over again. Cold weather is coming to the northeastern part of the United States again, so that could be bullish, but in the end sellers are willing to jump into the market above the $3 level handily.

NATGAS Video 12.01.18