Natural Gas Price Forecast December 26, 2017, Technical Analysis

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Natural gas markets initially dipped during the trading session on Friday, but found enough support near the $2.58 level to rally again. However, volatility continues to be a major issue. · FX Empire

Christopher Lewis

Updated Fri, Dec 22, 2017, 10:45 PM

Natural gas markets initially dropped during the trading session on Friday, but found support below the $2.60 level underneath, only to bounce yet again. I think there is plenty of resistance above, so I’m waiting for exhaustion to start selling. I think the $2.75 level is massive resistance, so I do not think we get above there. I think if we break down below the $2.50 level, that would be a catastrophic move and should send this market so much lower. The natural gas markets continue to struggle with a massive oversupply issue. The market is one that I have no interest in trying to buy, and I think that this is a “only” situation.

Even if we broke above the $2.75 level, I would not be impressed, and I think it would simply be another opportunity to start selling again. The $2.85 level above there would also be resistance. I think that we are starting to see natural gas in the same light that we had seen gold in the 1980s, a market that you sell every time we try to rally as there is no longer term strength being shown. The noisy conditions continue, but I think that if you are patient enough, you should see exhaustive candles that you can take advantage of for the longer-term attitude to present itself again. Ultimately, I think that natural gas is a market that’s easy to trade, the struggle is being patient enough to wait for the selling opportunities to present themselves. Remember that the session will have very little in the way of volume.