Natural Gas Price Forecast October 19, 2017, Technical Analysis

The natural gas markets initially tried to rally on Wednesday, but then broke down significantly. In fact, we crashed down to the $2.85 level, and it looks very likely that the market will continue to see selling pressure. However, the market looks likely to find sellers every time we rally. I think that the $3.00 level above continues to be the beginning of a massive “ceiling” in the market, but I would not be surprised at all to see some type of bounce from this general vicinity. I have noticed in buying natural gas, it is simply far too bearish. However, if we break down below the $2.85 level, we may continue to slip towards the $2.75 level. The oversupply in the market continues to be a major issue, and any time this market comes close to the $3.00 level, American companies are more than willing to flood the market with oversupply.

Selling rallies on short-term bounces continues to be the best way to trade this market, and I think that longer-term trainings difficult to do. After all, we are in larger consolidation with bearish momentum, but hanging onto a sell side position is going to be all but impossible. I think that the market continues to be one that will give you impulsive moves to the downside, and then a move back to the $3.00 level again. We have seen this phenomenon for several months, and as long as there is an oversupply of natural gas in the market, and I believe there will be for the near future, the natural gas markets will continue to be a market to sell off. In fact, I have no interest in buying this market, I just don’t see a longer-term upside anytime soon in this commodity.

NATGAS Video 19.10.17