Natural Gas Price Forecast November 24, 2017, Technical Analysis

Natural gas markets have broken down significantly during thin trading on Thursday, as American traders were a way for Thanksgiving. However, the market breaking down below the $3 level previously was an extraordinarily negative sign, and quite frankly a surprising one considering that the seasonality of natural gas is calling for higher pricing right now. If we cannot keep the market afloat at this point, I don’t see what does. I look at rallies as selling opportunities, as the longer-term outlook for natural gas course is negative, but the demand normally picks up enough to keep the market afloat during the November and December trading session. I think that we will probably go looking towards the $2.85 level underneath, which has been support in the past.

Expect short-term choppy trading yet again, and I think that selling the rallies continues to be the best way to deal with natural gas markets. If we were to break above the $3.10 level, then the volatility would pick up again, and probably to the upside due to colder temperatures. However, the recent breakdown has been quite stunning, and I think at this point any rally should be looked at with suspicion as the oversupply of natural gas continues to be a massive issue. If the US dollar strengthens as well, that could also put a lot of bearish pressure on this market. In general, this market should continue to be volatile to say the least, so use the CFD markets, as the futures markets will be very difficult, and of course cause a lot of potential damage to your trading account. By using small positions, you can take advantage of what has been a very negative move, but ultimately protect yourself from the extraordinarily dangerous conditions.

NATGAS Video 24.11.17