Natural Gas Price Forecast January 23, 2018, Technical Analysis

Natural gas markets initially fell during the trading hours on Monday, reaching as low as $3.14, but then bounced enough to show signs of life again. I think this shows just how much noise there is in the market, as although I do anticipate that we will break down, we may have a bit of fight left in the upside. If we break down below the $3 level, then I think the market comes unwound. Otherwise, I think that we could bounce a bit, but then sell at higher levels. I believe that the $3.40 level above is massive resistance, as seen going back over a year.

Exhaustive candles will be used to sell, but at this point I think we have a little bit of sideways action to go first, as the market tries to digest the gains. Even though this time year tends to be rather bullish for natural gas, we have not been able to hang on to major gains for any length of time. Because of this, I think that given enough time the sellers will return, based upon the massive oversupply that the market is fighting with. This is a situation that continues to be an issue for the markets: Americans and Canadians sitting on a wealth of natural gas and finding more every day it seems. Because of this, I think that any long-term trading must focus on the downside, and although we could get a bounce from here, it’s much safer to short when it gets overbought.

NATGAS Video 23.01.18