Natural Gas Price Forecast June 28, 2017, Technical Analysis

Natural gas markets went sideways during the day on Tuesday, as we continue to see quite a bit of interest in this market. The $3 level is looking like it is trying to offer support, and of course the 24-hour exponential moving average on the chart is showing signs of support as well. If we can break down below the $3.00 level, then I think we go down to fill the gap. Longer-term, we are most certainly in a negative downtrend, so I think that it is only a matter of time before we break down. If we did manage to break above the 3.08 level on a daily close, then I would be a buyer, at least short-term. There is a significant amount of resistance above. Ultimately, I think that the market reaches down to the $2.88 level, to test significant support underneath.

Volatility continues

I believe that volatility continues in this market, and with this being the case it’s likely that the will chop around, but I still favor the downside as the market is massively oversupplied, and ultimately, I think that overcomes everything in general. I also believe that we break down significantly given enough time, but we continue to chop around overall. If we do breakdown, I think we will massively pick up momentum in a downtrend that is strong and continues to be supported by the storage numbers coming out of both the United States and Canada.

If we do breakdown, the $2.92 level underneath should be a target as we close the gap underneath, as the market hates gaps longer term. I believe that given enough time the market continues to do what it always does, bounce around and close gaps. Natural gas continues to cause issues.

NATGAS Video 28.6.17