Natural Gas Price Forecast January 25, 2018, Technical Analysis

Natural gas markets went sideways initially during the trading session on Wednesday but found enough resistance above to roll over and show signs of weakness. This market is reaching the top of the overall consolidation area for the last year, and an area where I would anticipate a lot of selling pressure. We are also getting close to the end of the seasonal push to higher pricing for natural gas. Because of this, I am waiting for a selling opportunity, and we may be getting it right now. Depending on your risk profile, you may wish to start selling in this general vicinity. I would do so slowly though, because this market is extraordinarily volatile.

The $3.40-ish level above is the next major barrier for buyers, so I think that we would probably have a sudden move to the upside if we did clear that area. However, this market has gotten a bit ahead of itself recently and could fall to the $3.20 level without changing much. As soon as warmer temperatures are forecast to appear in the northeastern part of the United States, that should send this market lower.

Overall, I think the volatility continues to be a major concern, and that is something that you need to protect yourself from. The $3 level below is a massive area of interest and would make a nice longer-term target if we do get a breakdown in this market.

NATGAS Video 25.01.18