Natural Gas Price Forecast – natural gas markets break resistance again

Natural gas markets rally during the US session on Tuesday, breaking above the $2.97 level. That’s a very bullish sign, but quite frankly I think the significant resistance barrier is closer to the $3.00 level, so I look at this as a market that you are waiting for an opportunity to sell resistance and exhaustion. I think you will get it above, as I would point out that it seems as if volume is declining on the way higher. I believe that summer closer to the $3.00 level, we will see suppliers dump into the market yet again.

Beyond that, I have identified resistance all the way to at least the $3.05 level, so think of it more as a “zone.” I’m going to wait for an hourly exhaustive candle to start selling again, but above the $3.05 level I think that we could rally even further, perhaps reaching towards the $3.40 level. Looking at the longer-term charts though, I think it does favor the consolidation holding, meaning that the sellers should come back in sooner rather than later, and push this market back down. Overall, natural gas tends to focus on the short-term rather than the long, so obviously this week’s inventory number will be crucial as well. I find this market far too close to the resistance to start buying appear, so patients will be needed to take the trade that I’m looking for. You may find yourself sitting on your hands for a day or two, but as Jesse Livermore once said, “We get paid to wait.”

NATGAS Video 15.08.18