Natural Gas Price Forecast October 20, 2017, Technical Analysis

Natural gas markets cratered again during the day on Thursday, slicing through the $2.85 level and reaching towards fresh, new lows. We now look likely to test the $2.75 level underneath, which should be the next major support barrier. I think that natural gas markets falling continue to be a mainstay, because quite frankly we have this massive oversupply that cannot be worked through. I think that the natural gas markets are struggling overall, and that we could even break down below the $2.75 level. If we do, the market should then go to the $2.50 level after that.

I don’t like natural gas, and quite frankly I’m looking for rallies to sell. Unfortunately, this is a market that has gotten away lately, and it would’ve been hard to hang on to all of the profits after the selling of it near the $3 level yet again. The $2.85 level does tend to hold, so breaking down below here is a very negative sign indeed. That being said, unless you are short already the only thing that you can do is wait for some type of rally that you can start selling on signs of exhaustion. I don’t think it’s going to be easy, but you will have to be patient to take advantage of what has been an obvious downtrend, and an obvious amount of oversupply in the marketplace. Every time this market rallies, there are suppliers in the United States willing to dump supply of natural gas on to the marketplace, and many of them become profitable near the $3 level. Because of this, you should keep in mind that this is a “only” market, as trying to fight the overall trend is a fool’s game. Yes, some short-term traders will try to get cute and by natural gas at lower levels, but quite frankly I think it’s easier just to continue to sell.

NATGAS Video 20.10.17