Natural Gas Price Forecast September 29, 2017, Technical Analysis
The natural gas markets drifted lower during the session on Thursday, as we are starting to reach towards the $3 level. There should be a significant amount of support just below though, and I think a bounce is getting ready to happen. I also recognize that the $3.10 level is massively resistive, so it’s difficult to imagine a scenario in which we break out of that region easily. If we were to break down below the $3 level, the market should go to fill the gap, probably reaching towards the $2.91 level. This is a market that continues to be extraordinarily volatile, and I think that we will see a massive amount of choppiness as per usual. In the short term though, looks like the buyers are trying to come back and take advantage of this pullback. I think that we are trying to establish a new range, but it is far too early to suggest that it is set.
A breakdown could lead to a rapid filling of the gap, but a break above the $3.10 level would be the second time we did it here recently, and that of course be very bullish sign. I don’t know that’s going to happen, I think there is enough supply out there that natural gas companies are willing to throw supply into the market above the $3 level where it becomes somewhat profitable again. Longer-term, there is still going to be an oversupply issue when it comes natural gas, as there is far too much in the United States alone to keep this market from rallying for any real length of time. Longer-term, I remain bearish but I recognize that the buyers are trying to make a stand. Expect choppiness going forward.
NATGAS Video 29.9.17
This article was originally posted on FX Empire