Natural Gas Price Forecast March 20, 2018, Technical Analysis

Natural gas markets did very little during training on Monday, as traders came back from the weekend. There are still a lot of questions as to where the market goes in the short term, but longer-term I think it’s pretty much conventional knowledge at this point the natural gas won’t be able to command a premium for any great length of time. Because of that, I look at rallies as selling opportunities but as we are so low in the previous consolidation of the last year or so, I wouldn’t be thrilled about shorting here. I believe that eventually market participants will look to short this market on rallies, and those rallies are exactly what I’m waiting for. I’m not willing to participate in those rallies though, but I know that some short-term traders will try to take advantage of momentum moves. After all, the market does tend to be a bit thin at times, and that can make for significant moves in both directions.

NATGAS Video 20.03.18

I would love to short this market near the $3.00 level, but quite frankly I don’t think we’re going to get there anytime soon. Because of this, I will look to the 4-hour chart or possibly the daily chart for signs of selling pressure. Once we get it, I’m willing to throw at a small position to take advantage of what is a fundamental problem, far too much drilling for the demand that we see in general.