Natural Gas Price Forecast January 24, 2018, Technical Analysis

Natural gas markets have rallied again during the day on Tuesday, albeit on low-volume. We are starting to approach the top of the longer-term consolidation area, which extends to the $3.40 level. It’s likely that we will eventually see selling come back into play, especially considering that market participants will soon be looking for selling opportunities as warmer temperatures reappear in places like New York City, Boston, and Washington DC. Remember, those areas are huge consumers of natural gas, so it has a certain amount of influence on where we go next.

Longer-term, we have course have a glut of natural gas in the United States alone, so I suspect that we will eventually have a nice selling opportunity. The markets will continue to be very noisy, but I would be cautious about going long as the “easy money”, if there is such a thing in this market, has already been made to the upside. Typically, this market will show some type of longer-term signal before it sells off, and we have not done that yet. When it happens, it could be a very nice way to start trading this year. However, January is typically a positive month for natural gas and so far in 2018, it appears to be much more of the same. If we did break above the $3.40 level, then we may have something a little bit more significant going on, but the fundamentals typically don’t favor that.

NATGAS Video 24.01.18