Natural Gas Price Forecast July 20, 2017, Technical Analysis

As I write this, the natural gas markets have tried to break above the $3.10 level, but we have turned around to form what could be a shooting star in the market. I believe that natural gas markets are overbought, and I also believe more importantly: oversupplied. As natural gas inventory announcements come out during the day today, it’s likely that we will see quite a bit of volatility and of course movement in the market due to that. I think that the $3.12 level above continues to be massively resistive, so I am a seller of exhaustive candles on short-term charts. Given enough time, the market should then go down to the $3.00 level, which will have a certain amount of psychological importance. However, and the end the market will continue to sell a market that has no real pricing power.

Selling rallies

I continue to sell rallies that show signs of exhaustion, or even a “lower low.” The market should continue to go down to the $3.00 level, and a breakdown below there should send the market to the $2.95 level. I have no interest in buying, and even if we break above the $3.12 level above, I think that it’s only a matter of time before sellers return. It might be a short-term buying opportunity for those of you who are nimble enough, but quite frankly I would just look for higher levels to sell from, as it would just give the market much more room to fall.

NATGAS Video 20.7.17