Natural Gas Price Forecast June 29, 2017, Technical Analysis

Natural gas markets gapped higher at the open on Wednesday, showing signs of support, and that we should continue to go much higher. The $3.10 level above is an area that should cause a bit of resistance, so it made sense that we pulled back a little bit from that area. Quite frankly, even though we have seen so much in the way of bullish pressure and an overextension that I think that the market is getting a bit ahead of itself. The fact that the United States is going to see warmer temperatures over the next couple of weeks could drive up demand for natural gas, but that’s a short-term issue. Longer-term, we still have a massive amount of oversupply in this market, so quite frankly I think it’s only a matter of time before the exhausting movement comes back to the market. I believe that somewhere between here and there that the $3.25 level will essentially attract sellers.

Daily candles

I believe that we will probably have to look to daily candles and higher time frames to see exactly when the market has rolled over again, but it does roll over quite often. I think that the $3 level will be the next target, and then eventually we will try to fill the gap below, reaching towards the $2.92 level. There will be volatility, quite frankly this market isn’t very stable, as the movements can be rather rapid. However, I believe that energy itself is getting a little ahead of itself, and that sooner rather than later the sellers take over yet again. Longer-term, I think that the market goes down to the $2.75 level, but is can to take some time to build up more negative sentiment in this market yet again.

NATGAS Video 29.6.17