Natural Gas Price Forecast July 10, 2017, Technical Analysis

Natural gas markets rallied a bit during the day, but continues to see a lot of resistance just above, and quite frankly I’m looking for an opportunity to sell. The exhaustive candle or breakdown below the $2.90 level has me shorting natural gas yet again. I see a massive amount of resistance above, especially near the $3.00 level, which of course has a certain amount of psychological resistance built into the large, round number. Ultimately, the market breaking below the $2.85 level should send this market even lower, perhaps down to the $2.75 level given enough time. That’s an area where I would expect to see support yet again. However, looking at this chart and of course the fundamentals, there’s not an argument for natural gas to go higher longer term.

Selling rallies

I continue to sell rallies, I believe there’s far too much in the way of economic headwinds working against natural gas. Quite frankly, most of the rally during the day on Friday would have been due to the jobs number coming out stronger than anticipated, and therefore people are betting on factories using more natural gas to power themselves. However, there is still far too much in the way of natural gas for the markets to be depleted of supply, so I believe that the short-term rally is simply that, short-term. I look at this rally as an opportunity to short this market at a higher level, and I will be patient, looking at the best price to start selling as we will continue to see volatility, but of course negativity. Natural gas stocks remain very high in the United States and abroad. Because of this, natural gas has nowhere to go but lower over the longer term.

NATGAS Video 10.7.17