Natural Gas Price Forecast – natural gas markets continue to defy gravity

Natural gas markets have defied gravity for some time and have gapped higher again during the trading session on Tuesday. By breaking above the $4.00 level, the market turned around of form a shooting star. The shooting star of course shows signs of exhaustion and signifies that perhaps we are looking for more selling pressure eventually, and there is certainly a longer-term glut of supply. However, I believe that ultimately the weather forecast has moved this market far too quick from what I can see. If we break down below the bottom of the shooting star for the day on Tuesday, the market would break down towards the $3.80 level, perhaps even the $3.50 level. We have a couple of gaps that still need to be filled, which of course should happen eventually. However, this is a very dangerous market to be short of unless we get the proper signal. As far as buying is concerned, it’s going to be very difficult to do so considering we have gotten so far ahead of ourselves.

NATGAS Video 14.11.18

I think a break of the bottom of the shooting star candlestick is a signal to start selling, but until we get that it’s going to be difficult to get involved. I would wait for a daily close under that level, which of course shows that support is breaking down a bit. Ultimately, this is a market that has gotten too far ahead of itself obviously, based upon the parabolic move.