Natural Gas Price Forecast November 9, 2017, Technical Analysis

The natural gas markets fell initially during the trading session on Wednesday, testing the $3.10 level for support. We found it there, and for me that’s a very significant turn of events as it was an area that had been so resistive in the past. Because of this, the market more than likely will continue to go higher as we have put a temporary floor into the market at the very least. Natural gas markets have been climbing due to colder temperatures in the United States, as winter finally looks ready to appear. This obviously drives of demand, especially in the northeastern corridor, and that has a major influence on pricing. Structurally speaking, I remain very negative on natural gas, but I recognize that the seasonality also has its part to play in the situation.

Looking at the chart, the $3.30 level above is significant resistance, and I think that makes a nice target. Short-term pullback should continue to be buying opportunities if we can stay above the $3.10 level, although I recognize that it will be very volatile, and it will take a certain amount of wherewithal to hang onto any trade. If we break down below the $3.09 level, I believe that we will then fall to fill the gap which has the market going down to the $3.00 level. Very unlikely to happen, but it is the other side of the coin if you will.

The seasonality for natural gas markets to go higher typically in January, perhaps early February. So, I think that the next several weeks should be reasonably bullish for natural gas, or at least resilient if nothing else. I believe that a break above the $3.30 level is very unlikely, but if it does happen the next massive resistance barrier is going to be closer to the $3.50 level.

NATGAS Video 09.11.17