Natural Gas Price Forecast January 2, 2018, Technical Analysis

Natural gas markets continue to be very choppy, as volume has been a major issue. We have rallied a bit over the last couple of days, as the demand for natural gas has been steady and believable over the last session or so. However, I think that because we cannot hang onto gains for any significant length of time, I’m waiting to see an opportunity to start selling again, and I believe that the $3 level is the initial area where we could see sellers get involved, however, I think that the $3.10 level is even more resistant. I’m waiting to see some type of negative candle on the daily chart that I can get involved with, and I cannot stress this enough: in thin environments, you must wait for a daily candle to get involved. I think that the market should then dropped towards the $2.75 level, possibly even the $2.50 level. If the temperatures rise in the forecast going forward for the northeastern part of the United States, that could be the catalyst.

It’s not until we break above the $3.20 level that I think we are free to go higher, as we have seen so much in the way of consolidation with a negative slant recently. The market will continue to be very dangerous for huge positions, so make sure you are positioned accordingly, and of course add as the trade goes in your favor. As far as buying is concerned, I just simply don’t want to do it.

NATGAS Video 02.01.18