Natural Gas Price Forecast January 4, 2018, Technical Analysis

Natural gas traders drifted a little bit lower for the session, reaching down to the $2.96 handle. I think eventually, we will probably break down, but I don’t know if we’re going to bounce in the short term. After all, there was a gap in this general vicinity, so that could attract traders. I think that a breakdown below the $2.93 level signals that we are ready to go much lower, perhaps reaching towards the $2.85 level, and then eventually the $2.75 level. Ultimately, I think that every time we rally, you should be looking for a selling opportunity, mainly because the natural gas markets have not been able to keep gains, even during this time of year which is almost always bullish.

In general, I think that the demand for natural gas is starting to pick up, but quite frankly most of the gains are almost always given up rather quickly, so I think that if we rally at this point, as we are getting close to the top of the overall range, it’s likely to offer an opportunity to short this market yet again. Be patient, your trading opportunity will present itself, so sitting on the sidelines until we to get a breakdown or an exhaustive daily candle could be the best way to go. In general, this market will remain very volatile, but I think there is going to be a certain amount of fear in the minds of buyers as we cannot keep the gains in general.

NATGAS Video 03.01.18