Natural Gas Price Forecast January 16, 2018, Technical Analysis
Natural gas markets gapped lower during the open on Monday, I believe that the market will eventually try to fill this gap, but then rolled over to show signs of lackadaisical trading. I believe that a breakdown is coming, mainly because the natural gas markets cannot hang onto gains for any length of time. I think that the market will eventually break down below the $3.00 level, and a breakdown below that level should send this market down to the $2.75 level. I think rallies continue to offer opportunities to short this market, but we have seen sudden jumps to the upside due to the cold temperatures in the northeastern part of the United States. However, gains are to be sold, because of the massive oversupply issues that the natural gas markets will continue to deal with.
Ultimately, I think that the markets will continue the overall consolidation that we have seen over the last year or so, as every time the market rally significantly above the $3.00 level, natural gas suppliers are more than willing to sell to buyers out there as they need to unload the massive amounts of natural gas that they have built up over the last several years any time it becomes remotely profitable. If we do break above the $3.40 level, then I think the market breaks out to the upside, but it’s very unlikely to happen.
NATGAS Video 16.01.18
This article was originally posted on FX Empire