Natural Gas Price Forecast June 8, 2017, Technical Analysis

The natural gas markets initially rally during the day on Wednesday, but found the $3.10 level to be resistant, and therefore it looks as if the sellers are continuing to work against the buyers. I believe that the market is going to continue to be rather choppy though, so having said that I think that the 3.05 level is essentially “fair value” over the larger consolidation area. I believe that is only a matter of time before we break down though, and certainly favor the downside. If we can break below the lows again, I think the market will then go to the $2.75 level, and then possibly even lower than that. A break above the $3.10 level would be a very bullish sign, but until we do that, I think that there is probably more bearish pressure than anything else in this market.

Seasonality

The season isn’t very attractive to natural gas buyers, as the temperatures in the United States will be warmer. On top of that, it looks as if energy depleting factories are looking for energy and other forms, such as coal. I believe that the natural gas markets will continue to struggle, especially as oil becomes cheaper, it shows that there is a serious lack of demand for energy in general. I think that natural gas markets will continue to struggle just as the WTI Crude Oil market has, because quite frankly the oversupply of natural gas is even stronger than the oversupply of crude oil. Don’t believe me? When you look at an oil rig, the flame at the top of the tower is natural gas being burned off so that they don’t have to waste time collecting it. Natural gas will continue to be a market I believe that will break down every time it tries to rally.

NATGAS Video 08.6.17