Natural Gas Price Forecast January 18, 2018, Technical Analysis
The natural gas markets as you can see rallied a bit during the trading session on Wednesday, reaching as high as $3.28 during trading. However, we have pulled back slightly from there, and it looks likely that we are probably coming close to being exhausted, especially considering that there is a huge barrier extending to the $3.40 level. This is the wrong time of year to expect that the markets to continue going higher for very long, as they tend to top out in January.
Because of this, I like the idea of selling when we finally do get of exhaustive move or a roll over, and ultimately, I think that is coming rather soon. I believe that we will reach towards the $3 level initially, and then back down to the $2.75 level. I would stand on the sidelines still in this market, but we will eventually find a reason to go short. If we were to break above the $3.40 level, then I think of things explode to the upside as it would bring in a “blow off top.”
Your capital is at risk
Volatility is the one thing you can count on in this market, so if you have the ability to trade the CFD market, that’s probably going to be the easiest way to deal with this. Futures markets tend to move rather quickly, and can be rather damaging. Overall, markets participants look bullish, but I know that we have far too much in the way of supply.