Natural Gas Price Forecast July 28, 2017, Technical Analysis

Natural gas markets went sideways initially on Thursday and then shot through the roof as inventory numbers grew less than expected. However, we have seen this movie before, and being “less bad” does not make for a bullish market. Quite often, these knee-jerk reactions get challenge, and then reversed. The $3 level above has not been cracked, and therefore I feel that this is a market that can be sold if you can deal with the volatility. Yes, it will be difficult to deal with the times, but given enough time I think that we will break down towards the $2.85 level below. If we break down below there, I think that the market then goes to the $2.75 level, and perhaps even lower than that. I think that the area between the $3.00 and the $3.10 level above is a massive resistance region.

Volatility continues with downward pressure

I believe that longer-term, we will continue to see plenty of volatility in a market that isn’t quite as liquid as oil, and therefore the price movements can be sudden. However, I think that there is still plenty of bearish pressure and this spike will be seen as a selling opportunity over the longer term. Given enough time, I don’t see the reason why the sellers don’t come back, as there is plenty of reason to think the natural gas will continue to struggle to retain pricing power into the future. This is a market that continues to be choppy, but overall still looks very soft as natural gas is incomplete abundance.

NATGAS Video 28.7.17