Yahoo Finance Natural Gas Price Forecast March 16, 2018, Technical Analysis
Natural gas markets broke down during the trading session on Thursday, breaking below the $2.70 level, reaching down to the $2.65 level. I think that if we rally from here, it will only end up being a selling opportunity, and although I thought we could have tried to reach the $3 handle, I think that has been blown out of the water after the action on Thursday. Although I would anticipate a short-term bounce, it should be thought of as an opportunity to start selling yet again. I think that the $2.50 level could be targeted, and now that we are looking very bearish, I think that given enough time the sellers will continue to run this market.
NATGAS Video 16.03.18
I can’t think of a situation where I’d be willing to buy the commodity, as there is too much of it, and quite frankly with the warmer temperatures coming in the United States, it’s likely that we will continue to see a serious lack of demand for the massive oversupply. I like selling rallies, I like the $2.75 level as resistance, just as I like the $2.80 level as well. Ultimately, if we break down below the $2.50 level, it would be a complete collapse in a market that I think is under serious pressure. The move was immediate and swift during the trading session on Thursday, and I think this shows just how bearish we have become yet again. It’s going to be noisy, but I maintain that every time we rally, you should be looking for opportunities to short.
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This article was originally posted on FX Empire
