Natural Gas Price Forecast March 22, 2018, Technical Analysis

The natural gas markets tried to rally during the session on Wednesday but found the $2.71 level to be a bit too expensive. We rolled over significantly, as we continue to see sellers come in and short this market every time it rallies. I think that’s going to be the way going forward, I think that the market should go down to the $2.65 level, and I think that the market has even more support below at the $2.50 level. I think that every time we rally, there will be plenty of people willing to short this market, but there’s obviously going to be a lot of volatility.

NATGAS Video 22.03.18

Ultimately, I think that the market has plenty of resistance above, especially at the $2.80 level and the $3.00 level. I believe that the market should continue to be short-term focus, perhaps basing the next few moves upon inventory numbers in America, as we continue to see snowstorms hit the northeastern part of the United States. However, this is a temporary phenomenon, and most certainly will end soon. Because of this, I think that even if we do get the initial rally in the market, I think that it will only offer more opportunities to go short. I am currently looking at the following levels to start selling from: $2.72, $2.75, $2.80, and of course $3.00 for the longer-term.