Natural Gas Price Forecast March 8, 2018, Technical Analysis

The natural gas markets rallied a bit during the session on Wednesday, breaking above the $2.75 level. At this point, the $2.80 level should continue to be a target, and I think that if we can break above that level, then we will probably go to the $3 level next. That’s an area that will have a lot of psychological significance attached to it obviously. If we can break above that level, that would be a very bullish sign but, in the meantime, I think that it is more than likely going to be a situation where you can buy this market short-term, but then start selling for a larger move closer to the $3 handle.

If we break above $3, then I think the market probably goes to the $3.20 level after that. That’s an area where think there’s even more selling pressure, and of course the overall massive supply that is out there waiting to refill the supply tanks will put a bit of a limit on how far we go higher. Ultimately, I think that the market will eventually recognize that there are far too many areas in the United States are going to be pumping out at full tilt to keep a massive uptrend going. Because of this, I’m looking to short this market closer to the $3, but in the meantime, I recognize that short-term buying on the dips could work for people who are more prone to scalp.

NATGAS Video 08.03.18