Natural Gas Price Forecast March 15, 2018, Technical Analysis

Natural gas markets fell significantly during the trading session on Wednesday, slicing through the $2.75 level rather quickly. I think the volatility will continue to be a mainstay of this market, but that is nothing new. If you have been trading natural gas for any length of time, you should be aware of the massive amounts of volatility that occur. If we can break above the $2.76 handle, then the market should continue to go much higher. Ultimately, I think that there is a lot of resistance above, so I think that we are now starting to switch to a “sell the rallies” type of situation.

NATGAS Video 15.03.18

If we break down below the $2.72 level, the market probably drops down to the $2.70 level as well. Ultimately, I think that there is plenty of bearish pressure just waiting to happen, as we are escaping the time of year where there is typically a lot of bullish pressure. Even if we rallied from here, I would be looking for my longer-term resistance barrier to offer a selling opportunity as well, the $3.00 level. I think that buying for short-term traders may make sense as it would be a “dead cat bounce.” However, you would need to be very nimble and you would have to be very quick to take profits at the first signs of trouble. In general, I think that the natural gas markets are going to be very negative this year. However, this bounce was necessary after the massive selloff.

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