Natural Gas Price Forecast – natural gas rallies to close the week

Natural gas markets broke above the $2.90 level during the trading session on Friday, in a very bullish sign. However, if you been paying attention to my forecasts, you know that I think there is a significant amount of resistance built in between the $2.90 level and the $2.95 level as it was the previous consolidation. Now that we have broken below it and then reenter to test for resistance, I would expect to find it there, especially considering that the overall outlook for natural gas longer-term is so poor. Ultimately, I continue to sell rallies in this market and that it looks as if it may be starting to work out already. Keep in mind that Monday is Labor Day so that of course will have its effect on US trading which is the bulk of natural gas trading.

The $3.00 level above is massive resistance, so I think it’s only a matter of time before the sellers would jump in if we did approach that area. I don’t expect that though, so that’s a bit of a pipe dream. However, I would be all over that trade and be fully willing to start shorting aggressively in that area. At this point, I think if we break below the $2.90 level, that’s a sign that the rally failed, and it’s time to start going short again.

NATGAS Video 03.09.18