Natural Gas Price Forecast September 26, 2017, Technical Analysis

Natural gas markets went sideways initially during the session on Monday, after initially gapping lower. Ultimately, the market rallied a bit, but then rolled over. Natural gas markets continue to look very soft, and I think that will be the play going forward, simply selling this market every time it rallies. The $3 level above being resistive enough to keep the market down will be a strong showing of bearish pressure, and this being the case I think that we will go looking towards the support level at the $2.85 level next, as the oversupply issues continue to plague pricing. After all, we have just had 2 major hurricanes hit the southeastern part of the United States, and yet we continue to build inventory in natural gas.

Ultimately, if we break above the $3 level, we still would have to break well above the $3.10 level to be “broken out” from a longer-term perspective. I believe that rallies are to be sold on the first signs of exhaustion, and I also believe that we will eventually break down below the $2.85 level and go looking towards the $2.75 level. The volatility continues to be a major issue, so therefore keeping smaller positions might be the best way to go in a market that has been very difficult to deal with. I believe that the market should continue to be one that is traded very carefully, but certainly there is much more proclivity to sell this market than there is to buy it, and I don’t see that changing anytime soon. I do recognize that the support below is significant, so I’m not looking for some type of massive meltdown, just that the area above the $3 level continues to offer plenty of supply.

NATGAS Video 26.9.17