MTECHTIPS:-Natural Gas Price Forecast – natural gas markets drift slightly lower

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MTECHTIPS:-Natural Gas Price Forecast – natural gas markets drift slightly lower

MTECHTIPS-Natural gas markets have been in a major consolidation area for some time, swinging between $2.70 on the bottom, and $3.00 on the top, which extends to the $3.10 level. In other words, we have been range bound for so long that it is one of the easier markets the play but you need to have the patience to do so. With that in mind, as we are so close to the upper bound of the consolidation range, I am more apt to short this market than by it, and quite frankly I recognize that natural gas has a major oversupply issue anyway. With that in mind, I’m looking first short term rally is that I can sell, based upon signs of exhaustion and the upper bound of the consolidation phase. I believe that the market will continue to offer the short-term rallies in that day traders will continue to push this market around The biggest problem with the $3.00 level is that fracking companies in the United States suddenly find themselves very profitable when it comes to the oversupply. At $3.00, most of them are in relatively decent shape when it comes to selling. That has put a bit of a ceiling in the market for some time, something that traders love. Someday, we will break out of this range, but right now I don’t see it happening. This is especially true considering that the summer heat in the United States is starting to dissipate