Natural Gas Price Forecast March 26, 2018, Technical Analysis

Natural gas markets fell initially during the trading session on Friday, reaching down to the $2.60 level. That’s an area that begins significant support down to the $2.50 level. If we were to break down below the $2.50 level, the market could breakdown overall. I believe that the market continues to show signs of negativity regardless, so any time we get some type of bounce, it’s likely that the best thing you can do is look for some types of exhaustion to search shorting again. I think that the $2.80 level above is the first resistance barrier, followed by the $3.00 level. Any time we see some type of rally, I’m looking for the first signs of exhaustion to take advantage of what has been a very negative market.

NATGAS Video 26.03.18

Ultimately, the market is one that I have no interest in buying, even though I do recognize that these bounces will happen. I think that the market will continue to be volatile, and I do think that the market will continue to look at the oversupply of natural gas as a major negative factor, and now that we are starting to come out of the cold part of the year in the United States, that should also put negative pressure on this market. If we do break down below the $2.50 level, the market probably tracks down to the $2.40 level underneath which should be support.