Natural Gas Price Forecast March 27, 2018, Technical Analysis

Natural gas markets were very choppy during the trading session on Monday, as consumption of natural gas continues to fall in the United States. The weather in the United States is starting to warm up, so that will continue to put a lot of bearish pressure on natural gas longer-term. I think that any rally at this point is probably a great opportunity to start selling again, because there is so much negativity around this market. I think that the $2.80 level is an excellent place to look for selling opportunities, just as the $3.00 level would be above there.

The alternate scenario is that we do break down below the $2.50 level, which would be catastrophic for natural gas markets, and send them much lower. I think that the lack of a serious bounce in the natural gas markets shows just how negative things are after that massive selloff at the beginning of February. I think that the volatility will continue, but I don’t have any interest in buying this market, because I think that the rallies will be short-term at best. I think that if you are short-term focus, it might be possible to trade to the upside, but I think it is far easier to sell this market at higher levels than anything else, so patients may be needed to take advantage of the overall attitude. I will more than likely sit on the sidelines over the next couple of sessions to look for a selling opportunity, but I certainly am aware of the overall attitude.

NATGAS Video 27.03.18