Natural Gas Price forecast for the week of March 19, 2018, Technical AnalysisNatural gas markets initially tried to rally during the week but then rolled over at the $2.82 level. Ultimately, this is a market that showed exhaustion, so I think that the markets will eventually find support underneath.
Natural gas markets tried to rally during the week, but as we got the bearish numbers coming out of the inventory situation, the market rolled over again. Natural gas is certainly going to struggle with the weather getting warmer in the United States, and of course the inventory numbers being more bearish than anticipated. The $2.50 level underneath continues to offer support, so I think if we can break down below there, the market probably breaks down significantly. Otherwise, if we do rally I think that short-term traders will be looking for selling opportunities closer to the $3.00 level.
NATGAS Video 19.03.18
I think the natural gas markets will continue to be very noisy, and I do believe that it’s easier to trade this market from shorter-term standpoint. Either way, I look at this as an opportunity that gives you plenty of opportunities to go short if we get any type of rally. A breakdown below the $2.50 level probably sends this market looking for the $2.25 level. If we break down below there, it’s likely that the $2.00 level will be targeted as well. I would be stunned if we broke above the $3.00 level, but even then, I’m not ready to start buying as I think the $3.20 level will also bring in even more selling pressure. This is such a choppy marketplace due to the fact that it’s very thin at times, but with the massive drilling coming on line in the United States, it’s likely that we will continue to see sellers come out every time you get a chance.