Natural Gas Price forecast for the week of November 27, 2017, Technical Analysis

Natural gas markets gapped lower at the open of the week, and then sliced through the $3.00 level like it wasn’t even there. We have reached towards the $2.85 level underneath, which was supportive. The market continues to be very noisy, and I think that the last week has shown just how negative this market is. Because quite frankly it’s this season that natural gas tends to do quite well, with colder temperatures in the United States be in a major driver seasonally. This breakdown shows just how weak the natural gas markets are, and quite frankly I’m a bit surprised. However, I think that the area just below could be supportive, so I think the longer-term trader is going to continue to struggle in this market, because there is so much in the way of support and resistance in a reasonably tight range.

With this being the case, it’s likely that you’re going to have to trade this market on short-term charts to make any significant profit, because quite frankly the risk to reward ratio on longer-term charts just isn’t there. However, if we were to break below the $2.75 level, the market goes down to the $2.50 level, an area that’s even more supportive. Alternately, if we were to somehow break out to a fresh, new high, then the market probably goes to the $3.50 level. Even with that, it’s going to take a significant amount of patience to get a longer-term setup, so I will stick to short-term charts, playing the range that is obvious on these charts, and therefore hourly charts probably work better than anything else. In general, the markets are best played in the future markets, or perhaps even the CFD markets where you can use the leverage to your advantage and what has been an obvious rectangle.

NATGAS Video 27.11.17