Natural Gas Price Forecast March 19, 2018, Technical Analysis

Natural gas markets did almost nothing during the trading session on Friday, but after the massive selloff during the trading session on Thursday, that’s not much of a surprise. The inventory numbers on Thursday were very negative, so that sent this market lower. I think that the $2.50 level underneath will continue to be very supportive, but if we can break down below there I think that the natural gas markets will collapse a bit, perhaps dropping down to the $2.25 level next, followed by the $2.00 level. This isn’t to say that we can’t rally, most certainly we can. If we do breakout to the upside, I think that the $2.80 level is the next major selling area, followed very quickly by the $3.00 level.

NATGAS Video 19.03.18

At this point, and especially after the inventory numbers, I have no interest whatsoever in trying to buy this market, even if we bounce from the $2.50 level, an area where you would expect to see buyers. I think that the market and dissipates these bounces, but those are short-term moves at best. The overall fundamental outlook for natural gas is not good, especially considering that we are starting to head into spring in America, and that means warmer temperatures. Those warmer temperatures should continue to attract sellers in this market as demand will drop. Beyond that, we have far too much in the way of supply anyway, so this is a bit of a perfect storm.

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