Natural Gas Price Forecast August 21, 2017, Technical Analysis
Natural gas markets continue to be choppy, as Friday saw the sellers come back in. As we approached the $2.88 level, we saw a bit of buying, but given enough time I think that the markets will continue to break down as the oversupply issue should continue to be an issue. Rallies at this point should be nice selling opportunities as this market is most certainly bearish in general, and with this being the case I think that the market should go looking towards the $2.85 level underneath. A breakdown below there census market looking for the $2.75 level longer term, and perhaps even the $2.50 level after that which is my longer-term target. I expected plenty of volatility, because quite frankly the natural gas markets are just that: volatile.
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Selling rallies
I continue to sell rallies going forward, and I believe that the market has a massive ceiling at the $3 level. It’s not until we break above the $3.10 level that I would be concerned about selling, and on top of that we are starting to see extraordinarily bearish pressure overall.