Natural Gas Price Forecast March 12, 2018, Technical Analysis

Natural gas markets went back and forth during the trading session on Friday, as the overall attitude of the markets will continue to be jittery to say the least, as we have major conflicting issues going on at the same time. We have the seasonality of natural gas heading into bearish pressure, but we also have the longer-term oversupply as well. At the same time, we have a bit of a boost due to recent consumption figures, but I think that short-lived at best. I’m looking to sell rallies as they appear and would love to get short of this market at higher levels. However, if we were to break down below the $2.75 level, that would also be a sign that we are going lower. I have no interest in buying natural gas for more than a quick scalp.

The market continues to be very noisy, so I would keep my position size very small, because it can cause major issues with the type of volatility that we see occasionally. I believe that being cautious will be the best way to trade this market, as the natural gas markets are thin at times as well. I believe that every time we rally, you will be well served to look for signs of exhaustion to jump all over, but again there will be short-term traders out there willing to pick up value when it appears. I believe that the $2.50 level underneath is the “floor” in the market.

NATGAS Video 12.03.18