Natural Gas Price Forecast January 19, 2018, Technical Analysis

Natural gas markets have been rallying as of late, due to the lack of soft ground to drill in the United States. As counterintuitive as it is, even with the oversupply of natural gas we are not getting new supply as the ground has been so frozen. However, that is beginning to change and then the next few days we will see warmer temperatures in the United States, allowing for a mass of supply to reenter the marketplace. In the meantime, I’m looking for selling opportunities in a market that will eventually show exhaustion.

I believe that the $3.00 level will be targeted, but it should also be rather supportive. Once we break down below there, I would be aiming for the $2.75 level next, and I think that the general attitude of the market should continue. After all, just above the current trading area we have a massive amount of resistance, extending to the $3.40 level. I believe that the marketplace will continue to be very noisy, but most certainly if you can use a smaller position, you can start shorting in this general vicinity, but it will take some time to break down. I like selling rallies, but I would not jump in with a massive position, because if the noise of course can be very dangerous. Once we break down below the $3.00 level, I would be more than willing to add to a short position.

NATGAS Video 19.01.18