Natural Gas Price Forecast – natural gas markets fall again on Friday

Natural gas markets broke down below the $2.95 level during the day, tried to retake that level, then felt towards the $2.90 level. Ultimately, this is a market that I think will continue to be one that you can sell on rallies, but I also recognize that there is a significant amount of support at the $2.88 level underneath. It’s once we break there that I think that the aggressive sellers will come in and double up on their positions. That should send this market looking towards the $2.60 level, which of course is a much more substantial move. I rally from here should be a selling opportunity given enough time, and I think that the buyers will be looking at short-term perspectives at best.

The $3.00 level above continues offer resistance, extending to the $3.03 level after that. Overall, this is a market that should continue to be noisy, as most traders focus on next week’s weather reports more than anything else. Overall, we are getting close to a time of year where demand could be dropping off, and if that’s the case we should continue to see a bearish pressure come in every time at rallies and assign of exhaustion on these rallies is a perfect invitation to get short. Longer-term, I think $2.60 remains the overall target.

NATGAS Video 02.07.18