Natural Gas Price forecast for the week of July 17, 2017, Technical Analysis
Natural gas markets rallied during the week, but as you can see struggled at the $3 level yet again. This is an area that seems to attract a lot of resistance, and I believe that a roll over from here is very likely. The weekly candle of course is bullish, but I see so much in the way of noise above the $3 level that I believe it’s going to be difficult to continue to go higher. There seems to be a massive wall of resistance towards the $3.10 level, so if we can stay below there, I think the sellers will continue to punish this market. I think that we will go back down towards the $2.85 level, and then eventually the $2.75 level. I believe that the longer-term target is the $2.50 level, as oversupply of natural gas continues to be a major issue for this market.
Moderate temperatures
In the United States, the temperatures have been relatively moderate, and that of course has a negative effect on demand for the natural gas markets. Ultimately, this is a market that should continue to see volatility, but I believe with a significant oversupply in the market, it will continue to be a market that can’t be sold on rallies that show signs of failure. Ultimately, I anticipate that sellers will continue to run this market, but obviously with that being thinner than some other futures markets, it’s possible that we may struggle to have stability as the market tends to whip around radically. If we did break above the $3.10 level, the market probably then goes to the $3.25 level above, where I think there is even more resistance. Longer-term, I have no interest in buying this market.
This article was originally posted on FX Empire