Natural Gas Price Forecast March 5, 2018, Technical Analysis

The natural gas markets went back and forth during the course of the trading session on Friday, bouncing between the $2.70 level on the bottom and the $2.74 level on the top. This was a very tight range, but I think eventually we will continue to go much higher, perhaps reach towards the $3.00 level, where I would be more than willing to start selling. This is a market that eventually will show signs of exhaustion, and then I would be more than willing to come in and short this market as we have far too much in the way of supply. We are starting to get towards warmer temperatures in the United States, so that of course will drive down the demand for the natural gas commodity. I believe that the market will continue to be very noisy, but certainly have a negative overtone in general.

If we break down below the $2.70 level, we will probably drop down to $2.66 after that. I think that the market will eventually reach towards the $2.50 level underneath that should be massively supportive. A breakdown below that level will represent a total collapse in the market, something that I’m not expecting to see, but certainly recognize that could happen later this year. In the meantime, I’m looking at rallies as opportunities to get shorting this market on signs of exhaustion and will traded in no other way. Ultimately, I suspect that we will eventually get our opportunity. At this point, it’s probably better to wait.

NATGAS Video 05.03.18