Natural Gas Price Forecast September 28, 2017, Technical Analysis

Natural gas markets gapped higher at the open on Wednesday, reaching towards the $3 level. We are going towards the $3.10 level again, and it now looks likely that we are going to continue to see volatility in a market the quite frankly is just about untradeable at the moment. The $3.10 level has been a massive resistance barrier in the recent past, and I think it will continue to be going forward. However, we have broken above it, so even then you can be sure. Gaps tend to get filled, so I assume that will roll over and try to fill that gap, perhaps driving down to the $2.90 level. Overall, we have a lot of issues when it comes to the natural gas markets and any sense of stability, as the markets seem to be very thin, which of course causes a lot of issues.

Currently, I would assume that rallies are selling opportunities, on signs of exhaustion. Daily candles are probably the best way to trade this market though, because anything less than that seems to be a massive amount of noise, and that the market continues to see plenty of supply above the $3 level, as that is an area where it becomes profitable for several suppliers. This is a market that is traded quite a bit by the commercial interests when it comes to the commodity, which isn’t necessarily the case with other commodities. Because of this, fundamentals seem to play more of a part in the market. With this area being profitable for suppliers, I cannot help but think that there will be continued bearish pressure. If we broke above the $3.12 level, it’s possible that we would then try to reach towards $3.25 after that.

NATGAS Video 28.9.17