Natural Gas Price Forecast March 1, 2018, Technical Analysis

Natural gas markets went sideways during the trading session overall on Wednesday, as the market continues to try to form some type of base. I believe that the market will continue to look very likely to find buyers, if nothing else – because we have fallen so far. I think that the $2.50 level underneath is a massive “floor” in the market, and I think that we will return towards the $3.00 level as a result. Currently, this market is very tight it difficult to deal with, and it’s basically a market that you should be scalping if anything at all. I prefer to sell rallies as they appear, showing signs of exhaustion on the daily chart would be a great way to go short of a market that has far too much in the way of longer-term supply issues.

The supply issues facing the natural gas market is that Americans are finding even more natural gas in the fields now, and quite frankly can go over 3 centuries with the supply that they know about. This will almost always put in a ceiling when it comes to this market, so I am essentially a “only” traitor. That’s not to say we can’t rally in the short term, quite frankly I’m surprised it has taken this long. A relief rally makes sense, but instead of getting involved in that, I prefer to sit on the sidelines and wait for selling opportunities. If you are short-term trader, look at the $2.75 level as the ceiling, and the $2.65 level as the floor for any type of back and forth range bound trading system you wish to use.

NATGAS Video 01.03.18