Natural Gas Price Forecast March 13, 2018, Technical Analysis

Natural gas markets exploded to the upside on Monday after initially going sideways. We broke above the $2.80 level at one point, and as I record this it looks as if we are going to try to continue to go even higher. I suspect that there is massive resistance at the $3.00 level, so it’s not until we break above there that I would be convinced for a longer-term move. In the short term, if you are more of a short-term trader, we could continue to go higher. However, I think the $3.00 level will be massive resistance, and I think that the sellers will come back into that area, pushing us back down.

NATGAS Video 13.03.18

With this type of market, it’s very difficult and dangerous to be involved, but it’s likely that the impending spring season in the United States will eventually put sellers back in control. Quite frankly, I have been a bit surprised by the reactions that we have seen lately, but in the end of the historical data suggests that the sellers will start to get involved rather soon, and that this may be the last gasp of bullish pressure before warmer temperatures get involved. Supplies have been falling, which obviously has helped, and the storms in the northeastern part of the United States also have brought demand higher. However, I still believe that this is simply a short-term phenomenon.

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