Natural Gas Price Forecast June 27, 2017, Technical Analysis

Natural gas markets gapped higher at the open on Monday, bouncing directly into the $3.00 level. That’s an area that caused a bit of resistance though, so we pulled back a little bit to find buyers near the $2.97 handle. That’s an area that has turned around to show signs of bullish pressure, and now we have broken above the $3 level again, perhaps reaching towards the highs at the 3.02 level of the gap. That of course has the gap filled it now, so I think it’s only a matter of time before the sellers get involved, perhaps reaching down to the bottom of the gap again at the $2.92 level. Natural gas markets continue to be very choppy and volatile, but quite frankly that’s nothing new.

Looking for selling opportunities

I’m looking for selling opportunities, plain and simple. Even though we had a massive gap higher I have no interest in trying to buy this commodity. Quite frankly, the oversupply continues to be a major issue, and will continue into the near future. I believe that we will start selling off rather soon, and therefore at the first signs of exhaustion, I’m willing to get involved and start selling. I have a target of $2.88 below, and then perhaps even lower than that. I have no interest whatsoever in buying this market, there is simply far too much in the way of supply to keep this market going higher for any real length of time, so I believe that this is offering a nice opportunity. I will be selling rather soon, and at the first signs of trouble. Buying simply is not an option anytime soon.

NATGAS Video 27.6.17