Natural Gas Price Forecast June 23, 2017, Technical Analysis

The natural gas markets initially tried to rally during the day on Thursday, testing the $2.92 level. That is an area that was previously supportive, and the fact that we rolled over at a lower level than the previous session also suggests that we have more bearish pressure. I think that a breakdown below the $2.87 level should send this market down to the $2.85 level, and then eventually the $2.75 level underneath. This is a market that certainly has a lot of bearish pressure, especially considering that we had a massive gap at the beginning of the week. The $3.00 level above continues to be massively resistive, and I believe it is essentially a “ceiling” in the market. That being the case, the market continues to sell off every time it rallies, police as far as I am concerned.

Bearish pressure

The market should continue to suffer bearish pressure over the longer term as well, because quite frankly the oversupply issue and the natural gas market is horrific as far as the buyers would be concerned. I think that if we can break down below the $2.75 level, we then go down to the $2.50 level. Ultimately, I think it happens. However, this is a longer-term call in and in the short term the best thing you can do is start selling rallies given enough time.

In fact, I have no interest whatsoever in buying this market until we break significantly above the gap, perhaps even as high as the $3.07 level. A move above there would be very bullish, and of course would wipe out a lot of selling positions. I don’t think that’s going to happen however, although this market tends to be extraordinarily volatile, and tends to surprise at a moment’s notice.

NATGAS Video 23.6.17