Natural Gas Price Forecast March 6, 2018, Technical Analysis

Natural gas markets have gone back and forth during the trading session again on Monday, as we hang about the $2.70 level. We have recently sold off rather drastically, and that of course continues to be an issue that keeps buyers away. It makes sense though, because the recent shock would of course make it difficult to imagine a scenario where you would be buying the natural gas market. I think that the oversupply will continue to be a major issue, as Americans are coming out of colder weather, so that should continue to put bearish pressure on this market as it’ll bring down demand.

The oversupply of course continues to be a major factor in this market, so I believe that any rally that we get going forward will probably offer and I selling opportunity. I would love to start shorting the market near the $3.00 level, an area that would make a lot of sense for longer-term traders to get involved. I think that the market running into exhaustion in that area would be a nice opportunity to take advantage of what has been a very fundamentally negative situation. If we were to break down below the $2.50 level, the market should continue to go even lower, perhaps down to the $2.25 handle, something that would be remarkable indeed. At this point, I think most traders are waiting for the bounce to get involved.

NATGAS Video 06.03.18