Natural Gas Price Forecast October 23, 2017, Technical Analysis

Natural gas markets went sideways initially, but then bounced around significantly in both directions during the day on Friday. We found a bit of support at the $2.85 level underneath, and the bounce from there coincided with the Americans coming on board. Now that we have rallied the way we have, it looks as if it we will continue to try to go higher, perhaps reaching towards the $3 level again. By breaking above the $2.94 level, the market should continue to reach towards that area, but quite frankly this is a market that should continue to favor selling those rallies as there is so much in the way of supply when it comes to natural gas above there. Ultimately, this is a market that has so much in the way of supply that US fracking companies are willing to dump massive amounts of natural gas above that level. They become profitable at that point, and it’s likely that the situation will remain the same as natural gas is in overabundance when it comes to the United States and Canada.

Exhaustive candles are reason enough to start shorting, and I have no interest in buying this market. Yes, I recognize that we will probably rally from here, but that’s a short-term phenomenon that continues to attract sellers. I don’t see anything in this chart that tells me anything different, so it’s likely that the market should rally a bit, but then give us and I selling opportunity. For those of you who have been watching my videos here at FX Empire, you know that I have done quite well shorting this market on these rallies. Being patient should offer yet another opportunity to go short of the natural gas markets. Beyond the oversupply issue, the US dollar seems to be strengthening, and that of course will work against the value as well.

NATGAS Video 23.10.17